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B58/100FDD 2026

Escapology — Litigation & Risk

Other · FDD Items 3, 4 & 5

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
58 / 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
32
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$16.8M
Avg loan size
$525K
Participating lenders
15

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
1.5 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
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 58/100 rating

Risk Score Breakdown

  1. 01MINORCalifornia regulatory violation in 2023 involving material disclosure failures and record-keeping deficiencies, indicating compliance issues
  2. 02MINORHigh initial investment range ($626.5K–$2.3M) relative to average net income ($248K), creating 2.5–9.3 year payback period with substantial capital risk
  3. 03HIGHNo Item 19 financial performance representations (Going Concern: False), preventing validation of claimed average revenue/net income figures across franchisees
  4. 04HIGHUnit growth of 21.2% YoY is positive but system remains small (75 units), raising questions about scalability and franchisor operational capacity post-litigation
  5. 05MINOR6% royalty on gross sales compounds pressure on lower-performing locations; unclear if $707.7K average revenue is representative or includes outliers

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.