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B66/100FDD 2026

Discovery Map — Litigation & Risk

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

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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
66 / 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
6
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

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
Vermont
State whose law governs disputes — relevant if you're not based there

What drove the 66/100 rating

Risk Score Breakdown

  1. 01MINORUnit count declining 2.5% YoY (116 → ~113 units) indicates shrinking system
  2. 02MINORNo net income disclosure despite $58k average revenue — profitability opaque
  3. 03HIGHGoing Concern status is FALSE — suggests franchisor financial distress or instability
  4. 04MINOR10% royalty on print ads + 25% on web ads creates aggressive dual fee structure with punitive web rate
  5. 05MINORInitial investment ($29-36k) requires $25k franchise fee (86% of low-end capital) — leaves minimal working capital
  6. 06MINORAverage revenue of $58,171 is modest; unclear if this sustains franchisee after 10% + 25% royalties
  7. 07HIGHNo litigation disclosure provided; cannot verify clean legal history
  8. 08MEDItem 19 (financial performance) not disclosed — unable to validate realistic earnings claims

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.