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B59/100FDD 2024

Five Iron Golf — 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
59 / 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
New York
State whose law governs disputes — relevant if you're not based there

What drove the 59/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 Financial Performance Representation (FPR) disclosed — cannot verify if $665k avg net income is achievable or representative
  2. 02MINOROnly 22 units with unknown growth trajectory — insufficient scale and unclear unit expansion trend raises viability concerns
  3. 03HIGHGoing Concern status is FALSE — suggests franchisor may have had or currently has financial/operational sustainability questions
  4. 04MEDHigh initial investment range ($1.7M–$4.3M) relative to disclosed net income ($665k) yields 2.6–6.5 year payback with no growth guarantee
  5. 05MINOR7% royalty on gross sales (not net) creates cash flow pressure during low-revenue periods and compounds with operating expenses
  6. 06HIGHNo disclosed litigation but small unit base limits visibility — harder to detect systemic franchisee disputes or issues

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.