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D76/100FDD 2023

Bitcoin STEM — Litigation & Risk

Education - Children's Programs · 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
76 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
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
Virginia
State whose law governs disputes — relevant if you're not based there

What drove the 76/100 rating

Risk Score Breakdown

  1. 01MEDZero disclosed franchise units with unknown growth trajectory indicates brand is either pre-revenue or deliberately concealing unit data
  2. 02MINORNo average revenue or net income disclosure (Item 19) prevents validation of $48k-$139.5k investment ROI
  3. 03HIGHGoing concern status suggests financial instability at franchisor level despite operating franchise model
  4. 04MEDTiered royalty structure (7%-5%) on undisclosed revenue baseline makes it impossible to model franchisee profitability
  5. 05MEDBitcoin/cryptocurrency education niche has volatile demand, regulatory uncertainty, and limited addressable market
  6. 06HIGHNo litigation disclosure required language suggests either new brand with minimal franchise history or franchisor avoiding disclosure obligations
  7. 07MINOR5-year term is shorter than industry standard (10 years), suggesting higher franchisor exit risk or franchisee turnover concerns

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.