FranchiseVerdict
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D72/100FDD 2025

After Glow Tanning & Beauty Bar — Litigation & Risk

Personal Services - Beauty & Salon · 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
72 / 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
Minnesota
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status indicates financial instability or potential insolvency of franchisor
  2. 02MEDOnly 1 disclosed unit with unknown growth trajectory suggests system is not scaling or may be contracting
  3. 03MEDNet income not disclosed despite $150k average revenue claim — suggests profitability concerns or selective reporting
  4. 04MINORHigh royalty rate (7%) on modest $150k average revenue leaves only ~$139.5k before royalties, rent, staff, and supplies
  5. 05MINORNo Item 19 financial performance representations limits ability to validate earnings claims
  6. 06MINORSignificant investment range ($75k-$150k) with vague cost breakdown indicates unpredictable startup expenses
  7. 07MINOR10-year term is lengthy commitment given franchisor's unstable financial position

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.