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A34/100FDD 2026

Window World — Litigation & Risk

Food & Beverage - Quick Service · FDD Items 3, 4 & 5

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Elevated Risk

17 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
17
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
34 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
27
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$22.4M
Avg loan size
$828K
Participating lenders
17

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
North Carolina
State whose law governs disputes — relevant if you're not based there

What drove the 34/100 rating

Risk Score Breakdown

  1. 01MINORStagnant unit growth (1.4% YoY) indicates system contraction and weak franchisee recruitment
  2. 02MINORMultiple pending and concluded lawsuits involving trademark rights, contract disputes, and state registration violations signal operational and legal instability
  3. 03MEDNet income not disclosed in Item 19 prevents accurate ROI analysis and suggests franchisor may be hiding unfavorable unit economics
  4. 04MEDHigh royalty structure (up to 12% of product cost plus $75 per unit) combined with undisclosed profitability raises margin concerns
  5. 05MINORFranchise fee of $45,000 represents 37-100% of initial investment at lower end, creating high barrier to entry for thin margins
  6. 06MEDOnly 211 units system-wide limits bargaining power with suppliers and indicates limited brand recognition/market penetration

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.