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D72/100FDD 2025

Dessange — Litigation & Risk

Personal Services - Beauty & Salon · FDD Items 3, 4 & 5

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Elevated Risk

8 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
8
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
72 / 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
Delaware
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MINOROnly 3 existing units indicates minimal system scale and virtually no growth trajectory to evaluate
  2. 02MINORNo average revenue or net income disclosure prevents assessment of unit economics and profitability
  3. 03HIGHParent company (FSFC) litigation involving fraud allegations, non-compete violations, and trademark infringement creates reputational and operational risk
  4. 04HIGHGoing Concern = False suggests potential financial instability or viability questions at franchisor level
  5. 05MEDHigh initial investment ($443k-$1M+) paired with undisclosed profitability is extremely risky
  6. 06MINOR7-year term with zero franchise fee is unusual and may indicate difficulty attracting franchisees
  7. 07MEDNo disclosed unit growth and minimal unit count suggest market rejection or brand weakness

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.