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B65/100FDD 2025

Ygf — 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
65 / 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
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
Delaware
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MEDNo average revenue or net income disclosed — impossible to validate ROI or profitability claims
  2. 02MINOROnly 7 units system-wide indicates extremely small, unproven franchise network with minimal scale
  3. 03MINORUnprotected territory creates direct competition risk from other franchisees in same market
  4. 04MEDHigh investment range ($346.6K–$774K) with no disclosed earnings data makes risk/reward assessment impossible
  5. 05MINORDual royalty structure (3% fixed vs. tiered variable) lacks clarity on which applies and actual cost impact
  6. 06MINORUnknown unit growth trajectory suggests no track record of system expansion or franchisee success

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.