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B65/100FDD 2025

All American Pet Resorts — Litigation & Risk

Personal Services - Pet Care · FDD Items 3, 4 & 5

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
65 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
7
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$7.6M
Avg loan size
$1.1M
Participating lenders
4

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
3 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
Michigan
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01HIGHGoing concern status is FALSE — suggests potential financial instability at franchisor level
  2. 02MINOROnly 10 units system-wide with unknown growth trajectory indicates minimal scale and possible contraction risk
  3. 03HIGHRecent litigation (Kresge dispute) involving fiduciary duty breach claims raises governance and transparency concerns
  4. 04MINORNo protected territory creates direct competition risk between franchisees and limits competitive moat
  5. 05MINORHigh initial investment ($798k-$1.65M) against modest average net income ($207k) yields weak ROI (12-26% annually before debt service)
  6. 06MINOR7% royalty on $1.66M average revenue extracts ~$116k annually, further pressuring already thin margins

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.