B65/100FDD 2025
Dentsmart — Litigation & Risk
Automotive - Repair & Service · FDD Items 3, 4 & 5
Moderate — Review
1 case disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
65 / 100
FranchiseVerdict composite
Rating
MODERATE
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
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
Illinois
State whose law governs disputes — relevant if you're not based there
What drove the 65/100 rating
Risk Score Breakdown
- 01MINORNo Item 19 financial performance disclosure (average revenue/net income unknown) prevents ROI validation
- 02MINORRegulatory violation in 2011 with consent order indicates compliance/disclosure issues by predecessor entity
- 03MINOROnly 17 units with unknown growth trajectory suggests stagnant or declining system despite franchise model since 2011
- 04MINORHigh combined royalty burden (8% PDR + 8% Non-PDR) reduces franchisee profitability margins
- 05HIGHGoing Concern status is FALSE—ambiguous whether this means no going concern issue or concerns exist
- 06MINOR5-year term is shorter than industry standard (typically 10 years), creating renewal uncertainty risk
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.