Bumble Bee Blinds — Litigation & Risk

1. 01HIGHActive litigation involving parent company governance and ownership disputes creates operational uncertainty and potential distraction from franchisee support
2. 02MINORNo average net income disclosure despite 153 units operating — impossible to validate ROI claims or unit economics transparency
3. 03MINORExplosive 178.2% YoY unit growth is unsustainable and suggests potential oversaturation of territories or recruitment-driven expansion rather than organic demand
4. 04MINORMinimum $500/month royalty fee ($6,000 annually) represents 1.2% of average revenue even at top tier — high fixed cost burden for struggling locations
5. 05HIGHGoing Concern status is FALSE — ambiguous language requiring immediate clarification on parent company financial health and bankruptcy risk
6. 06MINORHigh franchise fee ($59,500) coupled with non-disclosure of net income creates misalignment of incentives — franchisor profits upfront while franchisee bears long-term risk

Severity inferred from FDD text — not a regulatory or legal classification