FranchiseVerdict
Camp Run-A-Mutt logo
B64/100FDD 2024

Camp Run-A-Mutt — Litigation & Risk

Education - Children's Programs · FDD Items 3, 4 & 5

Back to overview

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
64 / 100
FranchiseVerdict composite
Rating
MODERATE
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
11
Government-backed loans issued
Default rate
66.7%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
4 loans
Loans charged off or defaulted
Total loan volume
$5.3M
Avg loan size
$482K
Participating lenders
8

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
1.5 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
The state where the Camp Run-A-Mutt Business is located
State whose law governs disputes — relevant if you're not based there

What drove the 64/100 rating

Risk Score Breakdown

  1. 01MEDSystem contracting sharply: -7.7% YoY unit decline (12 units remaining) suggests deteriorating franchisee success and recruitment
  2. 02MEDNo disclosed net income despite $1.03M avg revenue—opacity around actual profitability raises concerns about franchisee ROI and sustainability
  3. 03HIGHLitigation history with fraud allegations: 2020-2021 arbitration involving breach, fraud claims, and rescission attempt indicates franchisor-franchisee conflict and potential business model disputes
  4. 04HIGHGoing Concern status = False: Red flag for franchisor financial stability and ability to support franchise system long-term
  5. 05MINORHigh investment-to-revenue ratio: $588.9K-$1.14M startup cost against $1.03M avg revenue creates thin margin for franchisee profitability after 6% royalties and operating costs

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.