FranchiseVerdict
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B60/100FDD 2024

DVMmatch — Litigation & Risk

Personal Services - Pet Care · 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
60 / 100
FranchiseVerdict composite
Rating
MODERATE
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
Indiana
State whose law governs disputes — relevant if you're not based there

What drove the 60/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 financial disclosure (average unit revenue and net income not provided) — impossible to validate ROI on $77.5k-$129k investment
  2. 02MEDOnly 4 operating units with 33.3% YoY growth suggests extremely early-stage system with limited operational track record and data reliability
  3. 03MEDCombined monthly fixed costs ($850 royalty + overhead) create high breakeven threshold relative to undisclosed average revenue
  4. 04MINORHigh franchise fee ($65k of $77.5k minimum investment = 84%) leaves minimal working capital for marketing and operations
  5. 05MINOR9% gross sales royalty on top of $850 monthly creates dual revenue drain that compounds profitability pressure

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.