Moderate — Review
1 case disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
48 / 100
FranchiseVerdict composite
Rating
STRONG
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
12
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
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
Florida
State whose law governs disputes — relevant if you're not based there
What drove the 48/100 rating
Risk Score Breakdown
- 01MEDNo Item 19 (Average Revenue/Net Income) disclosed — impossible to validate ROI on $83K-$124K investment
- 02MINORRegulatory violation (Feb 2022 Consent Order) shows compliance lapses in franchise registration and disclosure
- 03MINORUnprotected territory creates direct competition risk from other franchisees and company-owned units
- 04HIGHGoing Concern = False suggests potential financial instability or disclosure issues at corporate level
- 05MED6% royalty on undisclosed revenue base makes profitability assessment impossible
- 06MINORModest unit growth (12.8% YoY) from low base (106 units) indicates immature/fragile system
- 07MINOR5-year term is relatively short; renewal risk unclear
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.