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B59/100FDD 2025

Amazing Explorers Academy — Litigation & Risk

Education - Children's Programs · 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
59 / 100
FranchiseVerdict composite
Rating
MODERATE
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
5 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 59/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 financial disclosure (average revenue and net income not provided) — impossible to assess ROI or payback period
  2. 02HIGHGoing Concern status is FALSE — indicates potential financial instability at franchisor level, raising sustainability questions
  3. 03MINORExtreme investment range spread ($567.5K–$5.1M, 806% variance) suggests highly variable unit economics or lack of standardization
  4. 04MINOROnly 13 total units with modest 18.2% YoY growth — small system size limits brand recognition and support infrastructure
  5. 05MED7% royalty on undisclosed revenue means franchisees cannot model profitability or compare against industry benchmarks
  6. 06HIGHNo litigation disclosed is positive, but combined with other red flags suggests possible brand immaturity rather than strength

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.