Moderate — Review
2 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
59 / 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
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
Pennsylvania
State whose law governs disputes — relevant if you're not based there
What drove the 59/100 rating
Risk Score Breakdown
- 01MEDUnit count declined 20% YoY (19 units), indicating system contraction and potential franchisee dissatisfaction
- 02MEDNet income not disclosed in Item 19 — unable to validate profitability claims or ROI on $66-77K investment
- 03MINORTwo regulatory settlements (WA & VA, 2019) for selling franchises without proper registration — suggests compliance/disclosure issues
- 04MINORRoyalty structure (8% of gross) on average revenue of $201,655 yields ~$16,132 annual royalties with unknown net margins
- 05MEDHigh initial investment ($34,500 franchise fee + $66-77K total) relative to disclosed average revenue raises ROI concerns
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.