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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
49 / 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
55
Government-backed loans issued
Default rate
8.7%
vs <3% typical · system-wide
5-yr default rate
16.7%
Defaults
2 loans
Loans charged off or defaulted
Total loan volume
$27.5M
Avg loan size
$500K
Participating lenders
26
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
Florida
State whose law governs disputes — relevant if you're not based there
What drove the 49/100 rating
Risk Score Breakdown
- 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot verify if $825,930 avg revenue is achievable or representative
- 02MINORSlow unit growth of 7.9% YoY suggests market saturation or franchisee satisfaction concerns in a pet services sector with strong demand
- 03MINORHigh initial investment range ($569K-$1.39M) paired with modest average net income ($124,384 = 15% net margin) creates 4.6-year payback window
- 04HIGHGoing Concern flag is FALSE — unusual disclosure that raises questions about franchisor financial stability or recent restructuring
- 05MINOR6% royalty on $825,930 avg revenue = $49,556/year to franchisor, yet many successful pet franchises operate at lower royalty rates
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.