FranchiseVerdict
Wing Snob logo
A37/100FDD 2025

Wing Snob — Litigation & Risk

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

Back to overview

Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
37 / 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
21
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
$7.2M
Avg loan size
$344K
Participating lenders
10

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

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
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
Michigan
State whose law governs disputes — relevant if you're not based there

What drove the 37/100 rating

Risk Score Breakdown

  1. 01MINORMichigan regulatory violation (Sept 2023) involving unregistered franchise sales over 20-month period—suggests compliance gaps and potential legal exposure for franchisees
  2. 02MEDNet income not disclosed in FDD Item 19—impossible to assess actual profitability despite $767k average revenue; cannot validate ROI claims
  3. 03MEDHigh initial investment ($340k-$615k) relative to disclosed average revenue ($767k) creates thin margin for error and slow payback period
  4. 04MINORRapid 21.9% YoY unit growth may indicate aggressive recruitment over operational stability; growth rate unsustainable or masking underlying issues
  5. 05MINORNo disclosure of average unit volumes (AUV) by age/cohort—cannot assess whether franchisees are achieving comparable results to system average

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.