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B62/100FDD 2024

Daisy — Litigation & Risk

Business Services - Other · 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
62 / 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
3 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
Delaware
State whose law governs disputes — relevant if you're not based there

What drove the 62/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status indicates the franchisor may be financially unstable or unable to support franchisees long-term
  2. 02MEDZero disclosed franchise units with unknown growth trajectory suggests system is either brand new, collapsing, or data is incomplete
  3. 03MINORUnprotected territory creates direct competition risk—multiple franchisees could operate in same area, cannibalizing the $439k average net income
  4. 04MINORHigh royalty rate (10%) combined with $50k franchise fee leaves thin margins relative to reported average net income of $439.4k (assumes this is system-wide average, not median)
  5. 05HIGHNo litigation disclosed may indicate lack of transparency or that FDD Item 3 is incomplete
  6. 06MINORWide investment range ($116.7k–$308.5k, 164% variance) suggests inconsistent startup costs or uncontrolled franchise model

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.