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D77/100FDD 2025

Bricks & Minifigs — Litigation & Risk

Retail · 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
77 / 100
FranchiseVerdict composite
Rating
CAUTION
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
101
Government-backed loans issued
Default rate
33.3%
vs <3% typical · system-wide
5-yr default rate
50.0%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$18.2M
Avg loan size
$180K
Participating lenders
16

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

What drove the 77/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 (Net Income) disclosure limits ability to assess true profitability against $241k-$570k investment
  2. 02MED11% unit decline YoY (89% retention) suggests franchisee satisfaction or market challenges not fully transparent
  3. 03HIGH2019 litigation regarding no-poaching clauses indicates past compliance issues with franchise agreements
  4. 04MINORRoyalty structure ($500 minimum) means low-revenue locations pay disproportionately high effective royalty rates
  5. 05HIGHGoing Concern status = False raises questions about franchisor financial stability and long-term support

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.