F79/100FDD 2025
Yummi Go Gourmet — Litigation & Risk
Food & Beverage - Full Service · FDD Items 3, 4 & 5
Elevated Risk
8 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
8
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
79 / 100
FranchiseVerdict composite
Rating
AVOID
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
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
Texas
State whose law governs disputes — relevant if you're not based there
What drove the 79/100 rating
Risk Score Breakdown
- 01HIGHMultiple active litigation cases across three states (MD, WA, CA) for franchise law violations including selling unregistered franchises and failing to provide required disclosure documents
- 02HIGHGoing Concern status is False, indicating material doubts about the franchisor's ability to continue operations
- 03MEDNo average revenue or net income disclosed despite 397 units operating, preventing informed ROI analysis
- 04MINORExtremely wide and opaque royalty structure (5-25% of weekly gross sales) with no clarity on how rates are determined or justified
- 05MINOROne-year franchise term is unusually short and provides minimal security or recoupment period for $26k-$279k investment range
- 06MINORNo protected territory despite significant investment, exposing franchisees to direct competition from other system units
- 07MINORConsent orders requiring refunds to franchisees suggest previous investors have already experienced material losses
- 08HIGH69.3% YoY unit growth appears artificially inflated given litigation and going concern issues—suggests aggressive recruitment masking underlying problems
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.