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B64/100FDD 2025

Fireside RV Rental — 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
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

  1. 01HIGHGoing Concern warning indicates potential financial/operational distress at franchisor level despite unit growth
  2. 02MINORNo net income disclosure (Item 19) prevents assessment of actual franchisee profitability despite $1,510.72 average revenue figure
  3. 03HIGHAggressive unit growth (48% YoY) combined with going concern status suggests rapid expansion masking underlying problems or franchisor financial stress
  4. 04MINORRoyalty cap of $49,000 annually appears designed to limit franchisor revenue, potentially indicating cash flow problems
  5. 05MINORAverage revenue of $1,510.72 is extremely low and likely monthly—annual would be ~$18,128, which seems insufficient to cover typical business operating costs
  6. 06MED37-unit system is small and fragile; high percentage growth can mask low absolute unit count and limited operating history

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.