FranchiseVerdict
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A53/100FDD 2025

ZeroZero39 Pizzeria — Litigation & Risk

Food & Beverage - Pizza · 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
53 / 100
FranchiseVerdict composite
Rating
STRONG
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
California
State whose law governs disputes — relevant if you're not based there

What drove the 53/100 rating

Risk Score Breakdown

  1. 01MEDOnly 2 existing units with unknown growth trajectory indicates extremely limited operating history and system maturation
  2. 02MINORHigh investment range ($339K-$605K) against only 2 comparable locations creates validation risk and unclear cost drivers
  3. 03MINORSignificant gap between average net income ($300K) and total investment suggests 1.1-2.0 year payback with no buffer for underperformance
  4. 04MEDNo Item 19 financial performance representations disclosed; claimed averages cannot be independently verified
  5. 05MINORMicro-franchise system with only 2 units presents acute risk if either location underperforms or closes

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.