B65/100FDD 2025
Da Vi Nails / Em Lash Studio — Litigation & Risk
Personal Services - Beauty & Salon · FDD Items 3, 4 & 5
Moderate — Review
5 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
5
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
65 / 100
FranchiseVerdict composite
Rating
MODERATE
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
36
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
Not required
You retain the right to sue in court
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
Utah
State whose law governs disputes — relevant if you're not based there
What drove the 65/100 rating
Risk Score Breakdown
- 01MINORDeclining unit count (-3.5% YoY) signals system contraction and franchisee struggles
- 02HIGHSignificant regulatory litigation in major markets (Virginia, California) for franchise law violations including unregistered offerings and failure to provide disclosure documents
- 03MEDNo disclosed average revenue or net income data — opacity prevents ROI assessment and suggests franchisor may be hiding poor unit economics
- 04MINORHigh franchise fee ($77,500) combined with monthly royalties ($300-$1,000) with no transparent return metrics creates profitability risk
- 05MINORZero territory protection exposes franchisees to cannibalization and direct franchisor competition
- 06HIGHGoing concern status indicates potential financial instability of the franchisor itself
- 07MINOR5-year term is relatively short, limiting ability to recoup initial investment and build equity
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.