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D75/100FDD 2024

AcuSpray — Litigation & Risk

Real Estate · 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
75 / 100
FranchiseVerdict composite
Rating
CAUTION
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 75/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 franchise unit in system with unknown growth trajectory indicates nascent/failing system
  2. 02MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI validation and suggests poor performance
  3. 03MINORHigh royalty structure (20% of gross sales or minimum monthly fee) with no profitability data creates cash flow risk
  4. 04HIGHGoing Concern = FALSE indicates franchisor financial distress or stability questions
  5. 05MINORNo protected territory in single-unit system creates direct competition risk
  6. 06MINORHigh initial investment ($148k-$327k) relative to unproven concept with no performance benchmarks
  7. 07MINOR5-year term with unverified unit economics creates long-term commitment risk

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.