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B63/100FDD 2026

Bumper Man — Litigation & Risk

Other · FDD Items 3, 4 & 5

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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
63 / 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
Texas
State whose law governs disputes — relevant if you're not based there

What drove the 63/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 financial disclosure (avg revenue/net income not disclosed) — cannot validate ROI claims or unit economics
  2. 02MINORExtremely high royalty rate of 25% of gross sales significantly erodes profitability and leaves minimal margin for error
  3. 03MINORSlow unit growth of only 6.1% YoY suggests market saturation, franchisee dissatisfaction, or weak brand demand
  4. 04HIGHGoing Concern status is FALSE — indicates potential financial instability or accounting irregularities at corporate level
  5. 05MINORHigh initial investment ($73k-$115k) combined with 25% royalty creates substantial break-even risk without proven earnings data
  6. 06MINOR$50,000 franchise fee represents 68% of minimum investment, concentrating corporate revenue on unit recruitment rather than 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.