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B56/100FDD 2025

Dog Training Elite — Litigation & Risk

Personal Services - Pet Care · FDD Items 3, 4 & 5

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Moderate — Review

4 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
4
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
56 / 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
17
Government-backed loans issued
Default rate
100.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$2.4M
Avg loan size
$143K
Participating lenders
6

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
3 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
Utah
State whose law governs disputes — relevant if you're not based there

What drove the 56/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 financial disclosure (avg revenue/net income) prevents ROI validation against $187k-$297k investment
  2. 02HIGHInternal litigation involving breach of fiduciary duty and fund misappropriation suggests governance instability at franchisor level
  3. 03MINORThree franchisor-initiated lawsuits indicate enforcement challenges and potential franchisee compliance/profitability issues
  4. 04MINORSlow unit growth (5.3% YoY) with 419 total units suggests market saturation or franchisee satisfaction concerns
  5. 05MED8% royalty on undisclosed revenue creates opacity—actual net margins unknown relative to $110k franchise fee
  6. 06HIGHGoing concern status is FALSE, which in FDD context may indicate past financial distress warnings

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.