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
73 / 100
FranchiseVerdict composite
Rating
CAUTION
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 73/100 rating
Risk Score Breakdown
- 01MEDNo average revenue or net income disclosed (Item 19 missing) — impossible to assess profitability or ROI
- 02HIGHGoing Concern indicator is FALSE — suggests potential financial instability or operational uncertainty
- 03MINOROnly 7 units system-wide despite 250% YoY growth claim — extremely small, unproven system with minimal track record
- 04MINORZero franchise fee is unusual and may indicate difficulty attracting franchisees or lack of franchisor investment in support
- 05MINORNo protected territory — direct competition risk from other franchisees in same geographic area
- 06MINORComplex royalty structure with two options and revenue thresholds creates accounting complexity and potential disputes
- 07MINOR20-year term is unusually long given system immaturity and lack of performance data
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.