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B62/100FDD 2025

Blingle! — Litigation & Risk

Other · FDD Items 3, 4 & 5

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
62 / 100
FranchiseVerdict composite
Rating
MODERATE
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
49
Government-backed loans issued
Default rate
6.3%
vs <3% typical · system-wide
5-yr default rate
6.3%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$16.6M
Avg loan size
$339K
Participating lenders
7

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
Pennsylvania
State whose law governs disputes — relevant if you're not based there

What drove the 62/100 rating

Risk Score Breakdown

  1. 01MEDSystem contracting sharply: 26.4% unit decline YoY (78 units now) signals serious franchisee distress or poor system health
  2. 02HIGHActive litigation involving parent company ownership/governance creates uncertainty about franchisor stability and decision-making authority
  3. 03MEDNo Item 19 (Average Unit Volume) disclosed despite $488K average revenue claim — prevents verification of profitability and franchisee sustainability
  4. 04MINORTiered royalty structure with $500/month minimum may be unsustainable for struggling franchisees in declining system
  5. 05HIGHGoing Concern status = FALSE is ambiguous; if this means franchisor lacks going concern, indicates serious financial distress
  6. 06MEDHigh initial investment ($172-227K) relative to disclosed average revenue ($488K) with unknown net income creates ROI opacity
  7. 07MINORSeasonality risk: holiday decoration business has concentrated revenue window; no disclosure of off-season sustainability

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.