B64/100FDD 2023
EzLane.com — Litigation & Risk
Automotive - Repair & Service · 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
64 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID
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
Florida
State whose law governs disputes — relevant if you're not based there
What drove the 64/100 rating
Risk Score Breakdown
- 01MINOROnly 1 unit in system with unknown growth trajectory—no franchise system scale or proven replicability
- 02HIGHGoing Concern = False indicates potential financial instability or restructuring risk at franchisor level
- 03MINOR15% royalty on adjusted gross revenues is high relative to single-unit performance and creates cash flow pressure
- 04MINORNo Item 19 financial performance representations—cannot validate if $801k avg revenue and $600k net income are achievable or current
- 05MINORHigh investment range ($118k–$248k) with zero multi-unit franchisee examples to reference
- 06MINORProtected territory provided but meaningless without proven system demand or franchisor growth plans
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.