FranchiseVerdict
CPR Cell Phone Repair logo
F86/100FDD 2026

CPR Cell Phone Repair — Litigation & Risk

Home Services - Other · FDD Items 3, 4 & 5

Back to overview

Elevated Risk

29 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
29
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
86 / 100
FranchiseVerdict composite
Rating
AVOID
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
32
Government-backed loans issued
Default rate
43.5%
vs <3% typical · system-wide
5-yr default rate
50.0%
Defaults
10 loans
Loans charged off or defaulted
Total loan volume
$6.1M
Avg loan size
$191K
Participating lenders
20

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
1 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
Georgia
State whose law governs disputes — relevant if you're not based there

What drove the 86/100 rating

Risk Score Breakdown

  1. 01MINORNegative unit growth (-2.1% YoY) indicates shrinking franchise system with 419 units declining
  2. 02HIGHMultiple active litigation cases across jurisdictions (Daytona Tech, Ontario, Franventures, ABSA) with 25+ settled arbitration demands suggesting systemic franchisee disputes
  3. 03MEDNo disclosed average revenue or net income data prevents ROI validation on $90K-$360K investment range
  4. 04HIGHGoing concern status = False suggests potential financial instability at franchisor level
  5. 05MED5.8% royalty on undisclosed gross volume creates opacity on actual franchisee take-home profitability
  6. 06MINORHigh initial investment range ($270K spread) with no Item 19 benchmarks to justify cost

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.