A47/100FDD 2025
Essential Speech & ABA Therapy — Litigation & Risk
Other · FDD Items 3, 4 & 5
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
47 / 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
18
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
Texas
State whose law governs disputes — relevant if you're not based there
What drove the 47/100 rating
Risk Score Breakdown
- 01MINORNo Net Income disclosure in Item 19 — inability to assess actual profitability despite $1.1M average revenue
- 02MINORHigh investment-to-revenue ratio (initial investment of $267.5K-$698.75K against $1.1M avg revenue suggests 24-63% payback period minimum)
- 03MINORExplosive unit growth of 150% YoY with only 13 total units — unsustainable growth trajectory and market saturation risk in small territories
- 04HIGHGoing Concern flagged as False — suggests potential financial instability or disclosure issues at franchisor level
- 05HIGHNo litigation disclosed but high-regulation industry (speech/ABA therapy) with potential liability exposure and state licensing requirements not addressed
- 06MINORFranchise fee of $49,500 is moderate but combined with high royalties (5%) on healthcare revenue creates cash flow 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.