FranchiseVerdict
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B56/100FDD 2026

Clean Your Dirty Face — Litigation & Risk

Personal Services - Beauty & Salon · FDD Items 3, 4 & 5

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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
56 / 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
North Carolina
State whose law governs disputes — relevant if you're not based there

What drove the 56/100 rating

Risk Score Breakdown

  1. 01MINORNo net income disclosure (Item 19) despite $304k average revenue — profitability opaque
  2. 02HIGHTrademark infringement litigation (2017) shows IP vulnerabilities and reputational risk
  3. 03MINORUnprotected territory creates direct competition risk from same-brand locations
  4. 04MEDHigh initial investment ($131k–$333k) relative to disclosed revenue with unknown margins
  5. 05MINOR5-year term is shorter than industry standard (typically 10 years), increasing renewal risk
  6. 06MEDModest unit growth (23.1% YoY) with only 32 franchises suggests limited brand momentum

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.