FranchiseVerdict
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B55/100FDD 2026

Array Skin Therapy — Litigation & Risk

Health & Wellness - 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
55 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

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

What drove the 55/100 rating

Risk Score Breakdown

  1. 01MEDUnit count declined 25% YoY (8 units down from ~10-11), indicating system contraction and potential franchisee struggles
  2. 02MEDAverage net income not disclosed in Item 19, preventing ROI validation and raising transparency concerns
  3. 03MINORRoyalty structure caps at $4,000/month but allows 10% of gross revenue — at $789k avg revenue, franchisees pay ~$7,890/month (nearly double the cap), creating high ongoing cost burden
  4. 04MINORHigh initial investment ($186k-$259k) relative to average revenue ($789k) means 23-33% of annual revenue consumed just to break even on franchise fee amortization
  5. 05MINORRelatively young/small franchise system (8 units) lacks scale, brand recognition, and operational maturity to support franchisees
  6. 06HIGHNo disclosed litigation but declining units suggest performance or relationship issues not yet formalized as legal disputes

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.