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B55/100FDD 2025

Creative Kids Movement Network (CKMN) — Litigation & Risk

Education - Children's Programs · 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
55 / 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

What drove the 55/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 franchisee unit reported — impossible to validate system viability or growth trajectory
  2. 02MEDNet income not disclosed in FDD Item 19 — cannot verify $124,230 average revenue translates to actual profit
  3. 03MINORDelayed royalty structure ($0 for 16 months) suggests franchisor concerns about franchisee cash flow sustainability
  4. 04HIGHGoing Concern status = False indicates potential financial instability at franchisor level
  5. 05MINORFranchise fee ($24,600) represents ~20% of claimed average revenue — high entry cost relative to income claims
  6. 06MED5-year term is shorter than industry standard (typically 10 years) — suggests limited franchisor commitment or franchisee protection
  7. 07MINORSingle unit makes territory protection claim unverifiable and raises questions about market penetration strategy

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.