FranchiseVerdict
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B65/100FDD 2025

Floral Image — 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
Not required
You retain the right to sue in court
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
Georgia
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 financial disclosure (average revenue and net income not disclosed) - prevents ROI validation
  2. 02MINOROnly 21 units system-wide with unknown growth trajectory - suggests stagnant or declining franchise model
  3. 03MINORHigh initial investment ($128.6K-$258.9K) relative to system size - concentration risk if units fail
  4. 04MINOR8% royalty on gross (or minimum) structure penalizes low-revenue locations and lacks transparency
  5. 05MED10-year term is lengthy commitment with limited performance visibility and no franchisee success benchmarks
  6. 06MEDFloral retail sector experiencing secular decline due to e-commerce disruption (1-800-Flowers, FTD online)

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.