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D75/100FDD 2025

Blank Removal — Litigation & Risk

Personal Services - Beauty & Salon · 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
75 / 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
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Massachusetts
State whose law governs disputes — relevant if you're not based there

What drove the 75/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 operating unit despite 12-year franchise model — suggests systemic failure to attract or retain franchisees
  2. 02HIGHGoing Concern status is FALSE — indicates franchisor financial distress or inability to support franchisees
  3. 03MINORNo average revenue or net income disclosure — impossible to validate ROI on $96K-$162K investment
  4. 04MINORUnprotected territory — franchisees compete with franchisor and other franchisees with no geographic exclusivity
  5. 05MED8% royalty on undisclosed revenue — no transparency on actual cost burden or profitability threshold
  6. 06MINOR12-year term with only 1 unit operating — suggests poor unit economics or failed business model
  7. 07HIGHNo litigation disclosed but going concern status raises credibility concerns about franchisor viability

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.