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B63/100FDD 2023

Advanced Mobile IV — Litigation & Risk

Health & Wellness - Other · FDD Items 3, 4 & 5

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Moderate — Review

3 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
3
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
63 / 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
Utah
State whose law governs disputes — relevant if you're not based there

What drove the 63/100 rating

Risk Score Breakdown

  1. 01MINORRegulatory violations: Unregistered franchise sales in 3 states (2022) with settlement penalties indicate compliance failures and potential disclosure issues
  2. 02MEDNo financial transparency: Average revenue and net income not disclosed in FDD Item 19, making ROI impossible to verify
  3. 03MEDTiny franchise base: Only 18 units is extremely small; no growth rate disclosed raises questions about market demand and system viability
  4. 04MEDHigh initial investment relative to transparency: $56k-$141k entry cost without disclosed unit economics creates disproportionate risk
  5. 05HIGHGoing concern status: False designation suggests potential financial instability or operational challenges at franchisor level
  6. 06MINORImmature system: Small unit count combined with recent regulatory action suggests brand is unproven and undergoing growing pains

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.