FranchiseVerdict
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D75/100FDD 2025

Angel’s Five-Star Pet Care — Litigation & Risk

Personal Services - Pet Care · 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
75 / 100
FranchiseVerdict composite
Rating
CAUTION
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
California
State whose law governs disputes — relevant if you're not based there

What drove the 75/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status is FALSE — indicates potential financial distress or operational instability at franchisor level
  2. 02MINORZero existing units with unknown growth trajectory — no proven business model or franchisee success track record to validate
  3. 03MINORNo Item 19 financial performance disclosure — cannot verify average revenue or net income claims, making ROI impossible to assess
  4. 04MINORHigh franchise fee ($47,500) relative to total investment ($58,180–$75,750) — 64–82% of capital goes to franchisor before operations begin
  5. 05MINOR6% royalty on gross revenue (not net) — franchisees pay royalties on sales regardless of profitability, creating cash flow risk
  6. 06HIGHNo disclosed litigation but Going Concern status suggests undisclosed legal or financial troubles may exist

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.