FranchiseVerdict
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F90/100FDD 2025

Doxa — Litigation & Risk

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
90 / 100
FranchiseVerdict composite
Rating
AVOID
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
Idaho
State whose law governs disputes — relevant if you're not based there

What drove the 90/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status indicates the franchisor may be financially unstable or facing viability questions
  2. 02MINOROnly 1 unit in system signals either brand is brand-new, collapsing, or severely underperforming
  3. 03MINOR60% royalty on markup is extraordinarily high and leaves minimal margin for franchisee profitability
  4. 04MINORAverage net income of $520/month ($6,240/year) is far below living wage; ROI on $80k-$120k investment is negative or multi-decade payback
  5. 05MEDUnprotected territory means unlimited competition from other franchisees or direct franchisor sales in your market
  6. 06HIGHNo disclosed litigation but Going Concern status suggests potential undisclosed legal/financial exposure
  7. 07MINORFranchise fee of $60,000 combined with near-zero profitability creates immediate financial distress
  8. 08MINORUnknown unit growth trajectory with only 1 unit suggests franchisor cannot demonstrate system viability or franchisee success

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.