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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
56 / 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
Governing law
Iowa
State whose law governs disputes — relevant if you're not based there
What drove the 56/100 rating
Risk Score Breakdown
- 01MINORUnit count collapsed 50% year-over-year (11 units remaining) indicating severe system contraction and franchisee failure rate
- 02HIGHGoing Concern status is FALSE — franchisor may lack financial viability or stability
- 03MEDNet Income not disclosed despite average revenue of $895,844 — inability or unwillingness to show profitability is a major transparency red flag
- 04MEDHigh initial investment ($161,750–$276,000) combined with undisclosed profitability creates unfavorable risk/reward ratio
- 05MINOR5% royalty on net sales means franchisor extracts revenue even if franchisees are unprofitable
- 06MINOROnly 11 units remaining suggests system is failing; fewer operational units mean less franchisee support infrastructure and higher franchisor pressure on remaining operators
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.