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A45/100FDD 2025

101 Mobility — Litigation & Risk

Retail · FDD Items 3, 4 & 5

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
45 / 100
FranchiseVerdict composite
Rating
STRONG
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
23
Government-backed loans issued
Default rate
7.7%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$4.2M
Avg loan size
$183K
Participating lenders
18

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
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
North Carolina
State whose law governs disputes — relevant if you're not based there

What drove the 45/100 rating

Risk Score Breakdown

  1. 01MINORStagnant unit growth (0.6% YoY) suggests system maturation or contraction challenges with only 194 units
  2. 02MINORNo Item 19 (Average Net Income) disclosure limits ability to validate $767,913 average revenue claims or assess true profitability
  3. 03HIGHLitigation history shows franchisor aggressively pursued former franchisee, raising concerns about dispute resolution and relationship management
  4. 04MEDHigh initial investment ($181,850–$258,600) combined with undisclosed net income creates significant ROI uncertainty
  5. 05MINORTiered royalty structure (7% down to 5%) incentivizes growth but may compress margins for lower-revenue operators

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.