A46/100FDD 2024
Camp Bow Wow — Litigation & Risk
Personal Services - Pet Care · FDD Items 3, 4 & 5
Moderate — Review
3 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
3
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
46 / 100
FranchiseVerdict composite
Rating
STRONG
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
195
Government-backed loans issued
Default rate
3.7%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
4 loans
Loans charged off or defaulted
Total loan volume
$155.5M
Avg loan size
$797K
Participating lenders
64
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
Colorado
State whose law governs disputes — relevant if you're not based there
What drove the 46/100 rating
Risk Score Breakdown
- 01HIGHLitigation history: Franchisor has pursued enforcement actions against franchisees post-termination and shareholder derivative suit indicates governance issues at parent company level
- 02MINORModest unit growth (6.5% YoY) on 216-unit system suggests maturation or market saturation; growth rate declining relative to pet care industry expansion
- 03MINORNet income of $175,047 on $1,039,331 revenue equals 16.8% net margin—healthy but leaves minimal buffer given high investment ($1M+) and variable royalty structure (7% or minimum monthly royalty, whichever is greater)
- 04MINORHigh initial investment relative to annual net income (5.9x payback period) with 10-year term creates extended break-even risk
- 05MINORAbsence of Item 19 financial performance claim in FDD limits ability to validate franchisor's average revenue/income figures independently
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.