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B63/100FDD 2022

Count Junkula — Litigation & Risk

Other · FDD Items 3, 4 & 5

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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
63 / 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 63/100 rating

Risk Score Breakdown

  1. 01MEDOnly 2 existing units with unknown growth trajectory indicates extremely limited system maturity and validation data
  2. 02HIGHGoing Concern designation suggests franchisor financial instability or uncertainty about business viability
  3. 03MINORNo Item 19 financial performance claims provided; cannot independently verify the $1.04M average revenue figure or validate franchisee profitability claims
  4. 04MINORHigh initial investment ($93K-$148K) combined with only 2 operating units creates excessive risk with minimal peer network for support
  5. 05MEDFranchise fee of $50K represents 33-54% of minimum investment, leaving limited capital for working operations
  6. 06MINORUnknown unit growth rate prevents assessment of system momentum, retention, or franchisee success trajectory

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.