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B59/100FDD 2025

Dimensional Search — Litigation & Risk

Business Services - Staffing · FDD Items 3, 4 & 5

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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
59 / 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
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
No
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 59/100 rating

Risk Score Breakdown

  1. 01MINORExplosive unit growth (485.7% YoY) suggests either rapid expansion or recovery from collapse — unsustainable growth rates warrant scrutiny on unit quality and franchisee viability
  2. 02MEDFinancial performance completely non-disclosed (no Item 19 average revenue or net income) — impossible to validate ROI on $103,900-$131,600 investment plus 7.5% ongoing royalties
  3. 03MINORRegulatory compliance failure in 2019 (Illinois Attorney General violation for unregistered franchise agreements) — indicates operational/legal immaturity despite being established franchisor
  4. 04MINORNo protected territory despite high franchise fee — franchisees face direct competition from other brand units in same market
  5. 05HIGHGoing concern status flagged — suggests financial instability or operational uncertainty at corporate level
  6. 06MINOR7.5% royalty on cash receipts (not gross sales) is a red flag for revenue manipulation accountability and franchisee cash flow stress

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.