B55/100FDD 2025
Blue Diamond Sales & Rentals — Litigation & Risk
Real Estate · FDD Items 3, 4 & 5
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
55 / 100
FranchiseVerdict composite
Rating
MODERATE
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
What drove the 55/100 rating
Risk Score Breakdown
- 01MEDOnly 2 existing units with unknown growth trajectory indicates extremely limited track record and system maturity
- 02MEDNet income not disclosed in FDD Item 19 prevents validation of profitability claims and return on investment
- 03HIGHGoing Concern notation (False) is ambiguous and suggests potential financial instability or unclear franchisor viability
- 04HIGHNo litigation disclosed is unusual for franchise system and may indicate incomplete disclosure or very early stage
- 05MINORInitial investment range ($32,100-$45,200) is modest but combined with 5-6% royalties on $267K average revenue creates tight margin scenario
- 06MINORInsufficient franchisee sample size (2 units) makes $267,276 average revenue statistic unreliable and non-predictive
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.