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D77/100FDD 2025
Arco, Marathon, Or Tesoro — Litigation & Risk
Other · FDD Items 3, 4 & 5
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
—
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
77 / 100
FranchiseVerdict composite
Rating
CAUTION
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
218
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
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Governing law
Minnesota
State whose law governs disputes — relevant if you're not based there
What drove the 77/100 rating
Risk Score Breakdown
- 01MINORAll critical financial metrics absent (investment, revenue, net income, royalty rates) — impossible to assess profitability
- 02MINORUnit count and growth trajectory unknown — unable to verify system health or franchisee success rates
- 03MEDNo Item 19 financial performance data disclosed — major red flag under FTC Franchise Rule
- 04MINORTerritory not protected — direct competition from same brand and corporate locations likely
- 05HIGHGoing concern status is FALSE (meaning going concern issues may exist) — potential franchisor financial distress
- 06MINORZero transparency on franchise fee and term length — suggests either non-traditional model or deliberate obfuscation
- 07MINORGas/convenience store sector experiencing consolidation — unit counts declining industry-wide
- 08HIGHNo litigation disclosed but petroleum industry faces environmental/regulatory risks — litigation may exist but unreported
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.