FranchiseVerdict
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F79/100FDD 2023

Daela Cosmetic Tattoo — Litigation & Risk

Personal Services - Beauty & Salon · 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
79 / 100
FranchiseVerdict composite
Rating
AVOID
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
Washington
State whose law governs disputes — relevant if you're not based there

What drove the 79/100 rating

Risk Score Breakdown

  1. 01MEDOnly 2 existing units indicates extremely limited system validation and network support; no evidence of scalability or franchisee success
  2. 02HIGHGoing Concern status is FALSE, suggesting the franchisor may have disclosed financial viability issues in Item 8 of FDD
  3. 03MEDAverage revenue and net income not disclosed; inability to model ROI on $263k-$600k investment creates unquantifiable risk
  4. 04HIGHNo litigation disclosed is positive, but with only 2 units and potential going concern issues, litigation may not be the primary concern
  5. 05MINORHigh investment range ($263k-$600k) paired with unknown revenue/profit means franchisee cannot validate payback period or profitability
  6. 06MINORMicro-franchise system (2 units) suggests franchisor has not successfully replicated business model; expansion may be failing

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.