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D70/100FDD 2026
Delta Crown™ — Litigation & Risk
Personal Services - Beauty & Salon · 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
70 / 100
FranchiseVerdict composite
Rating
CAUTION
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
Texas
State whose law governs disputes — relevant if you're not based there
What drove the 70/100 rating
Risk Score Breakdown
- 01MINOROnly 1 franchised unit in system with unknown growth trajectory suggests minimal viable franchise model or recent launch/collapse
- 02HIGHGoing Concern status 'False' indicates franchisor may have liquidity/solvency issues or unstable corporate foundation
- 03MINORNo Item 19 financial performance representations available — cannot verify if $149,656 net income is achievable or typical
- 04MINORHigh initial investment ($364k-$528k) paired with single operating unit creates extreme selection bias and unproven scalability
- 05MINORMinimum royalty of $250/week ($13k annually) creates floor obligation regardless of revenue, raising cash flow risk for underperforming 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.