B58/100FDD 2025
Deka Lash — Litigation & Risk
Health & Wellness - Other · FDD Items 3, 4 & 5
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
58 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.
Total 7(a) loans
73
Government-backed loans issued
Default rate
14.6%
vs <3% typical · system-wide
5-yr default rate
14.3%
Defaults
6 loans
Loans charged off or defaulted
Total loan volume
$17.1M
Avg loan size
$234K
Participating lenders
22
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
Pennsylvania
State whose law governs disputes — relevant if you're not based there
What drove the 58/100 rating
Risk Score Breakdown
- 01MEDUnit count declined 4.6% YoY (124 units) — indicates system contraction rather than growth
- 02MEDNet income not disclosed in FDD — cannot assess actual profitability or ROI despite $282k avg revenue
- 03MINORHigh initial investment ($285.9k-$460.8k) with royalty floor of $1,000/month minimum creates fixed cost burden
- 04MINORAverage revenue of $282k may not support $1,000/month minimum royalty + operating costs in mature/declining market
- 05MINOR6% royalty + $1,000 minimum royalty structure heavily favors franchisor over struggling locations
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.