FranchiseVerdict
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A45/100FDD 2022

easyvet — Litigation & Risk

Health & Wellness - 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
45 / 100
FranchiseVerdict composite
Rating
STRONG
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
32
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
Tennessee
State whose law governs disputes — relevant if you're not based there

What drove the 45/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 financial performance representations disclosed — claimed $627K avg revenue and $415K net income cannot be independently verified
  2. 02MINORExtremely wide investment range ($34K-$769K, 22.6x spread) suggests inconsistent unit economics and unclear capital requirements
  3. 03MEDOnly 14 units with 71.4% YoY growth indicates very early-stage system (likely added only ~5 units) — limited operational track record
  4. 04MINORHigh royalty rate (7.5% standard) on modest average revenue ($627K) creates 4.7% net royalty burden before franchisor overhead
  5. 05HIGHGoing Concern footnote suggests financial instability at corporate level despite franchisee-level profitability claims
  6. 06MINORWide gap between avg revenue ($627K) and avg net income ($415K implies 66% net margin) is unusually high and warrants scrutiny

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.