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D72/100FDD 2025

All Team Staffing — Litigation & Risk

Business Services - Staffing · 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
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
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MINORSystem declining 30% YoY (14 units) indicates severe franchisee struggle or franchisor support failure
  2. 02MINORNo Item 19 (Average Revenue/Net Income) disclosure prevents accurate ROI assessment on $80.7K-$124.5K investment
  3. 03HIGHLitigation history (2017 settlement) with allegations of fund conversion and contract breaches suggests franchisor-franchisee trust issues
  4. 04MINORMinimum weekly royalty fee ($600-$1,250/week = $31.2K-$65K/year) is punitive and creates negative cash flow risk for underperforming locations
  5. 05HIGHGoing Concern = FALSE indicates potential financial instability at franchisor level; reputational/operational risk if company fails
  6. 06MINORHigh blended royalty structure (3% temp + 8% permanent placements) compounds minimum fees and reduces franchisee profitability margin

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.