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F82/100FDD 2024

Wing Zone — Litigation & Risk

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

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Lower Risk

No litigation cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
82 / 100
FranchiseVerdict composite
Rating
AVOID
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
70
Government-backed loans issued
Default rate
45.8%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
27 loans
Loans charged off or defaulted
Total loan volume
$17.1M
Avg loan size
$244K
Participating lenders
37

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
Nevada
State whose law governs disputes — relevant if you're not based there

What drove the 82/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 (Average Unit Volume) disclosure despite $824K average revenue claim — inability to verify profitability or validate earnings claims
  2. 02HIGHGoing Concern status is FALSE, indicating potential financial instability at corporate level
  3. 03MEDSlow unit growth (11.1% YoY on only 31 units) suggests limited demand or franchisee satisfaction issues
  4. 04MINORUnprotected territory creates direct competition risk and cannibalization within franchise system
  5. 05MINORWide investment range ($142K-$820.5K) indicates inconsistent unit economics and unclear cost structure
  6. 06MINORHigh royalty burden (6-7% weekly, not annually) compounds with other costs and reduces net margins significantly

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.