![Bio-One logo](https://cdn.brandfetch.io/biooneinc.com/w/128/h/128/fallback/lettermark?c=<img src="https://cdn.brandfetch.io/domain/apple.com?c=1idsvcTjLv919Ax0E2s" alt="Logo by Brandfetch" />){kind=small}
D74/100FDD 2025
Bio-One — Litigation & Risk
Health & Wellness - Other · FDD Items 3, 4 & 5
Elevated Risk
9 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
9
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
74 / 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
74
Government-backed loans issued
Default rate
24.0%
vs <3% typical · system-wide
5-yr default rate
16.7%
Defaults
6 loans
Loans charged off or defaulted
Total loan volume
$11.8M
Avg loan size
$159K
Participating lenders
13
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
3 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
Utah
State whose law governs disputes — relevant if you're not based there
What drove the 74/100 rating
Risk Score Breakdown
- 01MINORActive arbitration cases from 5 named former franchisees alleging breach of contract and supply chain issues suggest systemic operational or contractual problems
- 02MINORPrior settlements with 3 states (CA, IL, WA) for registration violations and failure to disclose founder's felony convictions indicates regulatory compliance failures and governance concerns
- 03HIGHMinimal unit growth (5.4% YoY) combined with active litigation creates doubt about franchisee satisfaction and system stability
- 04MEDNet income not disclosed despite $388K average revenue—inability to demonstrate profitability is a major red flag for prospective investors
- 05MINORHigh franchise fee ($60K) relative to modest average revenue ($389K) creates breakeven pressure, especially given $750-$2,250 minimum royalties may not scale with smaller units
- 06MINORMultiple breach of contract claims specifically mentioning 'required supplies' suggests potential supply-chain captivity or margin compression issues for franchisees
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.