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F85/100FDD 2026

Dazzler Select — Litigation & Risk

Lodging - Hotels & Motels · FDD Items 3, 4 & 5

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Elevated Risk

13 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
13
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
85 / 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
Jury trial waiver
Waived
You give up the right to a jury trial
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 Jersey
State whose law governs disputes — relevant if you're not based there

What drove the 85/100 rating

Risk Score Breakdown

  1. 01HIGHGoing concern status is FALSE — indicates franchisor financial distress or instability
  2. 02MINOROnly 4 units system-wide with unknown/likely stagnant growth suggests failed franchise model
  3. 03HIGHMultiple class action lawsuits involving price-fixing, misleading fees, and consumer protection violations indicate systemic fraud or deceptive practices
  4. 04MINORNo average revenue or net income disclosure (no Item 19) prevents ROI validation and suggests poor franchisee performance
  5. 05MINORHigh royalty burden of $85/room/month could be unsustainable; combined with $187K-$1.9M investment creates breakeven risk
  6. 06MINOR15-year term locks franchisees into relationship with legally embattled franchisor with deteriorating financial health
  7. 07HIGHPrice-fixing litigation involving IDeaS revenue management software suggests franchisor involvement in anti-competitive practices that could trigger additional damages

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.