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B61/100FDD 2025

Flower Tent — Litigation & Risk

Retail · 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
61 / 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
Pennsylvania
State whose law governs disputes — relevant if you're not based there

What drove the 61/100 rating

Risk Score Breakdown

  1. 01MEDSystem contracting sharply: 6.1% unit decline YoY indicates franchisee exits and potential market saturation or model weakness
  2. 02HIGHNo Item 19 financial disclosures: 'Going Concern' = False suggests franchisor either didn't provide or can't substantiate average unit economics
  3. 03MINORThin profit margins: $15,382 average net income on $131,131 revenue (11.7% net margin) leaves minimal cushion after 6% royalties (~$7,867), leaving only $7,515 for owner labor, rent, and contingencies
  4. 04MINORHigh initial investment relative to returns: $47,500-$82,000 entry cost requires 3+ years to break even at current profitability levels
  5. 05MINORLack of transparency: Absence of verified financial performance data makes it impossible to validate unit-level sustainability
  6. 06MEDSeasonal business risk: Flower retail is highly seasonal, yet no seasonal revenue variance data disclosed

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.