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F79/100FDD 2023

Dashing Diva — 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
Not required
You retain the right to sue in court
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
No
Franchisor can match any purchase offer when you try to sell
Governing law
New York
State whose law governs disputes — relevant if you're not based there

What drove the 79/100 rating

Risk Score Breakdown

  1. 01MINORSystem collapsed 37.5% YoY (5 units remaining) — severe contraction signals fundamental business model failure
  2. 02MINOR1-year franchise term is unusually short and suggests franchisor lacks confidence in unit longevity
  3. 03MINORNo financial disclosure (Item 19) — cannot verify claimed profitability or validate ROI claims
  4. 04MINORFixed royalty structure undefined — hidden costs create budgeting uncertainty for franchisees
  5. 05MINORNo territory protection — direct competition from other franchisees and corporate in same market
  6. 06MINORLarge initial investment ($232K–$516K) paired with minimal franchisee support infrastructure
  7. 07HIGHNo going concern status suggests franchisor financial instability or potential system wind-down

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.