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A31/100FDD 2025

Fastest Labs — Litigation & Risk

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
31 / 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
31
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
$4.7M
Avg loan size
$152K
Participating lenders
17

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 31/100 rating

Risk Score Breakdown

  1. 01MINORHigh upfront investment ($116.5k-$220.5k) relative to average net income ($203k) creates thin margin for error with 2-3 year payback minimum
  2. 02MEDMinimum royalty structure not disclosed — 'greater of 7% or minimum' with minimum amount unknown creates unpredictable cash flow risk
  3. 03MINOR26% YoY unit growth (229 units) is strong but may indicate recent scaling; longevity of growth model unproven
  4. 04MEDNo Item 19 financials disclosed despite average net income figures being provided — suggests data may be unaudited or from limited sample
  5. 05MINORBusiness model lacks detail in FDD summary; inability to assess service delivery repeatability and scalability

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.