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D75/100FDD 2026

Cooper’s Scoopers — Litigation & Risk

Personal Services - Pet Care · FDD Items 3, 4 & 5

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Elevated Risk

9 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
9
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

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
1
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

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
Virginia
State whose law governs disputes — relevant if you're not based there

What drove the 75/100 rating

Risk Score Breakdown

  1. 01HIGHExtreme litigation risk: Multiple fraud allegations, breach of contract, securities violations, and DOJ settlement involving parent company Chairman John Hewitt create substantial reputational and operational risk
  2. 02MINORSystem collapse indicators: Only 4 units with unknown/likely stagnant growth suggests failed franchise model unable to attract or retain franchisees
  3. 03HIGHFinancial opacity: No disclosed average revenue or net income data prevents ROI validation; combined with going concern status, suggests financial distress
  4. 04MINORAggressive hybrid royalty structure: Greater of 12% OR $125/week ($6,500/year minimum) means even struggling locations pay fixed overhead, reducing profitability during slow periods
  5. 05MINORParent company integrity concerns: Consent order requiring DOJ settlement disclosure indicates serious regulatory violations affecting franchisee brand trust and legal exposure
  6. 06MEDMinimal franchisee base: 4 units is critically small; no disclosed growth trajectory suggests existing franchisees are not profitable enough to attract new investment

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.