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B65/100FDD 2025

Fictiv Local — 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
65 / 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
Delaware
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MINORExtremely wide investment range ($199K-$890K) suggests inconsistent unit economics and unclear cost structure
  2. 02MEDNo average revenue or net income disclosed — impossible to assess ROI, payback period, or profitability benchmarks
  3. 03MINORTiered royalty structure (11% new / 3% existing) creates misaligned incentives and may discourage customer retention focus
  4. 04MINOROnly 4 franchised units with 300% YoY growth suggests extremely early stage — statistically meaningless sample size and unproven model
  5. 05HIGHGoing Concern = FALSE status indicates potential financial instability or recent restructuring at franchisor level
  6. 06MINORHigh initial franchise fee ($39,500) combined with opaque financials increases downside risk

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.