![Boat Sitters logo](https://cdn.brandfetch.io/boatsitters.com/w/128/h/128/fallback/lettermark?c=<img src="https://cdn.brandfetch.io/domain/apple.com?c=1idsvcTjLv919Ax0E2s" alt="Logo by Brandfetch" />){kind=small}
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
65 / 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
Governing law
Connecticut
State whose law governs disputes — relevant if you're not based there
What drove the 65/100 rating
Risk Score Breakdown
- 01MINORZero existing franchise units suggests brand is pre-revenue or experiencing complete system collapse
- 02MEDFinancial metrics (revenue and net income) completely undisclosed — inability or unwillingness to provide Item 19 is major red flag
- 03MINORUnprotected territory creates direct competition risk; multiple franchisees could saturate same market
- 04MINORDual royalty structure (15% + 6%) totaling up to 21% is exceptionally high and compounds profitability risk
- 05MINORHigh franchise fee ($25,000) relative to investment floor ($41,800) suggests front-loaded franchisor revenue model
- 06MEDNo disclosed franchisee count makes growth trajectory and system viability impossible to validate
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.