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D73/100FDD 2025

Dakota London — 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
73 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

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
Arizona
State whose law governs disputes — relevant if you're not based there

What drove the 73/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status indicates the franchisor may have solvency or operational viability issues
  2. 02MINOROnly 3 units in system with unknown growth trajectory suggests stagnation or failure to scale
  3. 03MEDNo Item 19 (Financial Performance Representations) disclosed — cannot validate $261,963 avg net income claim
  4. 04MINORHigh initial investment ($372k-$523k) relative to only 3 franchise locations indicates unproven model
  5. 05MINOR7% royalty on $1.1M avg revenue = $77.5k annually, representing 30% of claimed net income — sustainability 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.