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
75 / 100
FranchiseVerdict composite
Rating
CAUTION
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
Arizona
State whose law governs disputes — relevant if you're not based there
What drove the 75/100 rating
Risk Score Breakdown
- 01MINORZero franchised units despite offering franchise since unknown date—suggests failed or non-existent franchise system
- 02HIGHGoing Concern status is FALSE, indicating potential financial distress or instability at franchisor level
- 03MEDNo average revenue or net income disclosed (missing Item 19)—impossible to validate ROI or unit economics
- 04MINORExtremely high capital requirement ($1.1M–$3M) with no performance benchmarks to justify cost
- 05MED7% royalty on undisclosed revenue creates unknown ongoing burden with no baseline for profitability
- 06MEDNo disclosed unit growth trajectory or comparable franchise units for reference checking
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.