Alphagraphics: Litigation & Risk
Business Services · FDD Items 3, 4 & 5
Moderate: Review
1 case disclosed in FDD Items 3 and 4.
FDD Items 3 & 4
Litigation Metrics
- Cases disclosed
- 1
- Total from FDD Items 3 and 4
- Bankruptcy (Item 4)
- None
- Franchisor or officer bankruptcy
- Verdict score
- 40 / 100
- FranchiseVerdict composite · higher is better
- Rating
- C
- A / B / C / D / F verdict grade
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Charge-off rate is the share of loans that were charged off or settled for less than the full balance.
- Total 7(a) loans
- 346
- Government-backed loans issued
- Charge-off rate
- 28.9%
- vs 16% franchise average
- 5-yr charge-off rate
- 0.0%
- Defaults
- 77 loans
- Loans charged off or defaulted
- Total loan volume
- $127.4M
- Avg loan size
- $368K
- Participating lenders
- 38
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
- Not waived
- 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
- Colorado
- State whose law governs disputes. Relevant if you're not based there
Extracted from FDD Item 3
Litigation Detail
One pending action: AlphaGraphics sued former Georgia franchisees for breach of Franchise Agreement, misappropriation of trade secrets, and violation of post-term non-compete after they began operating a competing business using AlphaGraphics customer data; court entered a stipulated injunction and compelled remaining claims to arbitration (hearing scheduled Aug 2026); defendants asserted counterclaims for breach of implied covenant of good faith and fair dealing.
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.