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F79/100FDD 2025

Apex Leadership Co. — Litigation & Risk

Education - Tutoring & Test Prep · FDD Items 3, 4 & 5

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
79 / 100
FranchiseVerdict composite
Rating
AVOID
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
26
Government-backed loans issued
Default rate
42.9%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
6 loans
Loans charged off or defaulted
Total loan volume
$5.6M
Avg loan size
$216K
Participating lenders
10

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
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
Texas
State whose law governs disputes — relevant if you're not based there

What drove the 79/100 rating

Risk Score Breakdown

  1. 01MINOR2015 regulatory violation by predecessor entity for failing to present disclosure documents timely and selling franchise while registration pending—indicates compliance or governance issues in corporate history
  2. 02MINORNo Item 19 Financial Performance Representation (going_concern: False)—inability to validate the $197,384 average net income claim independently; significant gap between gross revenue ($916,578) and net income ($197,384) suggests 78.5% cost structure requiring scrutiny
  3. 03MINORModest unit growth of 10.2% YoY against 131 total units suggests slower expansion momentum; vulnerable to market saturation in leadership/training sector
  4. 04MINORHigh initial investment range ($94K–$143K) paired with 8% royalty on gross revenue creates tight breakeven timeline—franchisee needs >$246K gross revenue annually just to cover 8% royalty alone
  5. 05MINORDual royalty structure (8% standard, 6% on Anython fundraising) adds complexity and potential for revenue disputes; unclear how 'Anython' is defined and tracked

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.