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A34/100FDD 2026

Express Employment Professionals — Litigation & Risk

Business Services - Staffing · FDD Items 3, 4 & 5

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Elevated Risk

8 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
8
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
34 / 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
113
Government-backed loans issued
Default rate
2.0%
vs <3% typical · system-wide
5-yr default rate
7.7%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$36.8M
Avg loan size
$326K
Participating lenders
49

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

What drove the 34/100 rating

Risk Score Breakdown

  1. 01MINORDeclining unit count (-3.2% YoY with 765 units) indicates system contraction and potential market saturation or franchisee dissatisfaction
  2. 02MINORExceptionally high royalty structure (40% of gross margin) severely limits franchisee profitability and leaves minimal cushion for operating expenses
  3. 03HIGHMultiple litigation patterns: fraud allegations, debt collection lawsuits against franchisees, wage/labor disputes, and territory misrepresentation claims suggest systemic franchisor-franchisee tensions
  4. 04MINORNo Item 19 (average net income) disclosure prevents transparent ROI analysis despite high royalty burden—critical red flag for a $131k-$599k investment
  5. 05MINORSettled class action on labor/wage statements raises compliance and operational risk concerns that may persist post-settlement
  6. 06MINORFormer franchisee allegations of territory misrepresentation directly undermine the franchise model's core value proposition

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.