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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
55 / 100
FranchiseVerdict composite
Rating
STRONG
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 Jersey
State whose law governs disputes — relevant if you're not based there
What drove the 55/100 rating
Risk Score Breakdown
- 01MEDOnly 1 franchise unit disclosed — impossible to validate system viability, growth trajectory, or franchisee success patterns
- 02MINORNo Item 19 financial performance representation — average revenue and net income figures cannot be independently verified or attributed to franchisees
- 03HIGHGoing Concern status is False — suggests parent company or franchisor may have financial stability questions
- 04MEDSeverely limited franchisee pool — only one unit means zero peer validation, no comparable performance data, and high execution risk on franchisor support
- 05MINORTiered royalty structure incentivizes volume but lacks transparency on typical franchisee breakeven point relative to $79,800–$99,245 initial investment
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.