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
83 / 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
New York
State whose law governs disputes — relevant if you're not based there
What drove the 83/100 rating
Risk Score Breakdown
- 01HIGHGoing Concern status indicates financial instability or viability questions at franchisor level
- 02MINORZero existing franchise units suggests brand has never successfully scaled or is in early/failed launch phase
- 03MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI validation and suggests poor unit economics
- 04MINORHigh initial investment ($1.25M-$1.7M) with unproven profitability model creates severe financial risk
- 05MINORRoyalty structure tied to 'Workspot's Gross Revenue' is non-standard and suggests unclear or dependent business model
- 06MEDNo disclosed unit growth history raises questions about market viability and franchisee retention
- 07MINOR10-year term locks franchisee into unproven concept with no performance track record
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.