FranchiseVerdict
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D72/100FDD 2026

AumBio — Litigation & Risk

Other · 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
72 / 100
FranchiseVerdict composite
Rating
CAUTION
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
No
Franchisor can match any purchase offer when you try to sell
Governing law
Illinois
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MINORIllinois Cease and Desist order (April 2024) against franchisor principals for unsupported health claims and regulatory violations regarding medical status misrepresentation
  2. 02MEDExtremely small unit count (only 3 locations) with no disclosed growth trajectory, suggesting minimal system traction or viability
  3. 03MEDFinancial performance completely non-disclosed: zero transparency on average unit volumes, profitability, or franchisee ROI metrics
  4. 04MINORHigh initial investment ($180-278K) combined with 10-year commitment and 6% royalties with no revenue benchmarks to assess break-even feasibility
  5. 05HIGHGoing Concern status indicates potential financial instability of franchisor despite recent regulatory action
  6. 06MINORNo Item 19 (average unit economics) in FDD suggests franchisor unable or unwilling to provide performance data

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.