F78/100FDD 2024
Bella Bridesmaids — Litigation & Risk
Cleaning - Commercial & Janitorial · 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
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
78 / 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
10
Government-backed loans issued
Default rate
25.0%
vs <3% typical · system-wide
5-yr default rate
100.0%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$1.6M
Avg loan size
$158K
Participating lenders
6
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
Illinois
State whose law governs disputes — relevant if you're not based there
What drove the 78/100 rating
Risk Score Breakdown
- 01MEDUnit count declined 25.5% year-over-year (45 units down from ~60), indicating systemic franchisee struggles or exits
- 02MEDNet income not disclosed in FDD Item 19, preventing ROI assessment and hiding profitability reality
- 03MINORRoyalty structure with $600 minimum means franchisees at lower revenue ($363K avg) pay ~2% effective rate, but struggling locations may hit the floor — masking true cost burden
- 04MINORHigh investment-to-revenue ratio: $102.9K-$262K startup against $363K average revenue = 28-72% of first-year gross, creating extended breakeven periods
- 05MED5-year term is relatively short in franchise context; combined with unit decline, suggests confidence issues
- 06MINORWedding/bridesmaids market is seasonal, event-dependent, and highly sensitive to economic downturns affecting discretionary spending
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.