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D72/100FDD 2025

Alexis Lauren — Litigation & Risk

Health & Wellness - Other · 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
Delaware
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 is FALSE — indicates potential financial instability or viability issues at corporate level
  2. 02MINOROnly 1 unit in system with unknown growth trajectory — insufficient data on scalability and no proven multi-unit success
  3. 03MEDNet Income not disclosed — unable to validate actual profitability claims; $1.59M avg revenue may not translate to acceptable ROI on $835K-$1.36M investment
  4. 04MINORHigh initial investment ($835K-$1.36M) relative to single-unit track record and lack of transparent earnings data
  5. 05MINOR6% royalty on gross collections (not net) — franchisee bears all operational risk while paying on top-line revenue
  6. 06HIGHNo litigation disclosed but Going Concern flag suggests underlying corporate stress not yet manifest in lawsuits

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.