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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
77 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.
Total 7(a) loans
79
Government-backed loans issued
Default rate
32.5%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
25 loans
Loans charged off or defaulted
Total loan volume
$11.4M
Avg loan size
$145K
Participating lenders
35
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
Georgia
State whose law governs disputes — relevant if you're not based there
What drove the 77/100 rating
Risk Score Breakdown
- 01MINORUnit count collapsed 19.1% YoY (46 units remaining) — indicates severe system contraction and franchisee exits
- 02MEDNet income not disclosed in Item 19 — impossible to validate actual profitability claims against $506k average revenue
- 03HIGHGoing Concern status is False — suggests franchisor may have financial/operational viability concerns
- 04MINORHigh initial investment ($130.8k-$189.3k) paired with declining unit count creates survivorship risk
- 05MINORModest 5% royalty does not offset customer acquisition costs typical in specialty retail foot care services
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.