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A22/100FDD 2026
Ameriprise Financial Services, LLC Independent Advisor Business — Litigation & Risk
Business Services - Tax & Financial · FDD Items 3, 4 & 5
Elevated Risk
10 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
10
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
22 / 100
FranchiseVerdict composite
Rating
STRONG
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
574
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
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
1 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 22/100 rating
Risk Score Breakdown
- 01MINORDeclining unit count (-3.0% YoY) signals shrinking franchisee base and potential market saturation or dissatisfaction
- 02MINORExtremely wide royalty range (9-28% of GDC) lacks transparency; unclear what determines placement and actual franchisee take-home
- 03HIGHSix active litigation matters including class action, FINRA arbitration, and three regulatory settlements indicate systemic compliance failures in supervision and advertising
- 04MEDNo average net income disclosed despite $3.07M average revenue — suggests marginal profitability or franchisor unwilling to disclose poor performer data
- 05MINORUnprotected territory creates direct competition risk from other franchisees and company-employed advisors
- 06MINORLow franchise fee ($1,500) and high investment range suggests upfront capital may be understated or variable costs are substantial
- 07MINORThree-year term is short; renewal risk and franchisor control leverage are high
- 08MINORRecent SEC/FINRA settlements indicate franchisor's own regulatory compliance deficiencies that cascade to franchisees
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.