FranchiseVerdict
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A47/100FDD 2022

bioPURE — Litigation & Risk

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
47 / 100
FranchiseVerdict composite
Rating
STRONG
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
Ohio
State whose law governs disputes — relevant if you're not based there

What drove the 47/100 rating

Risk Score Breakdown

  1. 01MEDUnit count declined 4.4% year-over-year (46 units), indicating system contraction and potential market saturation or franchisee dissatisfaction
  2. 02MINORHigh initial investment ($22.5K-$78K) relative to average net income ($193.9K), yielding only 2.5-8.6x annual payback, with unclear path to profitability in early years
  3. 03MINORWide variance in initial investment costs suggests inconsistent territory valuations or significant ancillary costs not clearly itemized in FDD Item 7
  4. 04MINORRoyalty structure up to 8% of gross sales is aggressive given modest average revenue of $206K; at max royalty, franchisees pay $16.5K annually just in fees
  5. 05MEDNo Item 19 (Financial Performance Representations) disclosed—cannot independently verify if $206K average revenue and $193.9K net income are median, mean, or based on subset of 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.