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B59/100FDD 2025

AmSpirit Business Connections — Litigation & Risk

Other · 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
Not required
You retain the right to sue in court
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
Ohio
State whose law governs disputes — relevant if you're not based there

What drove the 59/100 rating

Risk Score Breakdown

  1. 01MEDNo average revenue or net income disclosed in FDD Item 19 — impossible to validate ROI claims
  2. 02MEDMinimal unit growth (5.9% YoY) with only 19 total units suggests weak system traction and limited proven model
  3. 03MINORUnprotected territory creates direct competition risk from other AmSpirit franchisees in your market
  4. 04MINORWide investment range ($4,900–$54,600) lacks clarity on what drives cost variance and actual startup requirements
  5. 05MINOR7% royalty on gross revenues (not net) means you pay fees even during unprofitable months
  6. 06MINOR10-year term is lengthy given unproven unit economics and minimal system maturity

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.