FranchiseVerdict
Créatif logo
D70/100FDD 2025

Créatif — Litigation & Risk

Other · FDD Items 3, 4 & 5

Back to overview

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
70 / 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
The state where your franchised business is located
State whose law governs disputes — relevant if you're not based there

What drove the 70/100 rating

Risk Score Breakdown

  1. 01MINOROnly 4 units in system with unknown growth trajectory suggests early-stage or stalled expansion
  2. 02HIGHGoing Concern = False indicates franchisor financial instability or lack of transparency
  3. 03MEDNo Item 19 (Financial Performance Representations) disclosed — cannot verify claimed $118,646.72 net income
  4. 04MINORWide investment range ($42,300–$342,538) suggests inconsistent unit economics or undefined model clarity
  5. 05MINORRoyalty structure (7–10%) on modest $16,824 weekly revenue ($875,648 annual) creates thin margin risk
  6. 06MINOR10-year term with $35,000 franchise fee is aggressive for 4-unit system with no brand recognition data

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.