FranchiseVerdict
Bubble Bus logo
D76/100FDD 2023

Bubble Bus — Litigation & Risk

Other · FDD Items 3, 4 & 5

Back to overview

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
76 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
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
Missouri
State whose law governs disputes — relevant if you're not based there

What drove the 76/100 rating

Risk Score Breakdown

  1. 01MEDSystem experiencing severe contraction: 28.6% unit decline YoY (from ~15 to 11 units) indicates fundamental business model or support issues
  2. 02MINORNo financial disclosure (Item 19): Franchisor refuses to provide average unit volumes or net income, making ROI impossible to validate
  3. 03HIGHGoing Concern status is FALSE: Franchisor may be financially distressed or unwilling to commit long-term viability assurances
  4. 04MINORVery low royalty floor ($750/quarter = $3,000 annually suggests units generating minimal revenue or franchisor unable to sustain support at higher fees
  5. 05MEDHigh initial investment ($121k-$147k) paired with undisclosed earnings creates unjustifiable risk-reward asymmetry
  6. 06MINORSmall system size (11 units) with ongoing attrition limits operational leverage, support resources, and brand recognition

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.