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
65 / 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
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
Minnesota
State whose law governs disputes — relevant if you're not based there
What drove the 65/100 rating
Risk Score Breakdown
- 01MINORNo average revenue or net income disclosure (Item 19) — impossible to assess profitability or ROI
- 02MINOROnly 11 units system-wide with unknown growth trajectory — suggests minimal scale, market traction, or franchisor confidence
- 03HIGHGoing Concern indicator is FALSE — potential financial viability concerns at franchisor level
- 04MEDPer-agent monthly fees ($32-$53) create variable cost structure that could squeeze margins if agent count declines
- 05MINORNo protected territory — franchisees face direct competition from other franchisees and company-owned locations
- 06MINOR5-year term is relatively short for real estate franchise model requiring client relationship building
- 07MINORCombination of base fee ($371/mo) plus per-agent fees creates unclear total cost structure and scalability risk
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.