FranchiseVerdict
Wolfnights logo
B61/100FDD 2025

Wolfnights — Litigation & Risk

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

Back to overview

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
61 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

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
No
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
New York
State whose law governs disputes — relevant if you're not based there

What drove the 61/100 rating

Risk Score Breakdown

  1. 01MINOROnly 4 units in system with unknown growth trajectory indicates micro-franchise with unproven scalability
  2. 02HIGHGoing Concern = False suggests franchisor financial instability or inability to support franchisees long-term
  3. 03MINORHigh investment range ($256K-$580K) against only 4 operating units raises questions about unit economics and franchisor viability
  4. 04MEDNo Item 19 (financial performance representations) disclosed — cannot validate if average revenue figures are typical or outliers
  5. 05MEDExtremely limited franchisee pool (4 units) makes it nearly impossible to conduct meaningful market validation
  6. 06MINOR6% royalty on $1.04M average revenue = $62,674 annual royalty per unit — sustainability unclear at lower revenue levels

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.