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D70/100FDD 2024

EagleRider — 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
70 / 100
FranchiseVerdict composite
Rating
CAUTION
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
8
Government-backed loans issued
Default rate
37.5%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
3 loans
Loans charged off or defaulted
Total loan volume
$2.8M
Avg loan size
$344K
Participating lenders
8

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

What drove the 70/100 rating

Risk Score Breakdown

  1. 01MEDUnit count declined 11.1% year-over-year (154 to ~137 units), indicating system contraction and potential saturation or performance issues
  2. 02MEDNo average revenue or net income disclosed in FDD Item 19, making ROI projections impossible and preventing informed investment decisions
  3. 03MINORUnprotected territory creates direct competition risk — multiple franchisees could operate in same area, cannibalizing rental revenue
  4. 04MINORComplex royalty structure (10% rentals + 5% retail OR $350/month minimum) may incentivize underreporting of gross revenue to avoid higher fees
  5. 05MINORWide investment range ($73.5K–$317K) suggests inconsistent startup costs and unclear capital requirements across locations
  6. 06MINORHigh royalty burden (10% of gross rentals) leaves thin margins in seasonal/tourism-dependent motorcycle rental business
  7. 07HIGHGoing Concern flag is FALSE — ambiguous wording raises questions about whether franchisor disclosed financial viability concerns

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.