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D72/100FDD 2024

Blue Eagle Investigations — 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
72 / 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
Kansas
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MEDFranchise system contracting sharply (-15.8% unit decline YoY) signals widespread franchisee dissatisfaction or failure
  2. 02HIGHActive litigation by franchisor against franchisee indicates enforcement disputes and potential relationship breakdown
  3. 03MED20% royalty on gross sales is extremely high for a service business with undisclosed profitability metrics
  4. 04MINORNo Item 19 financial performance disclosure despite $100k franchise fee—impossible to assess realistic ROI
  5. 05MINORHigh initial investment ($56.8k–$165.5k) paired with unknown revenue/net income creates blind investment scenario
  6. 06HIGHGoing concern status suggests franchisor financial instability despite collecting $100k upfront fees and 20% royalties

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.