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B65/100FDD 2025

G.L.O.M. Global — 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
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
California
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 financial disclosure (average revenue and net income not provided) — impossible to validate ROI claims or profitability benchmarks
  2. 02HIGHGoing concern status is FALSE, suggesting potential financial instability or operational viability questions at corporate level
  3. 03MINOROnly 30 units system-wide with unknown growth trajectory — indicates either nascent brand or stagnation; insufficient scale data
  4. 04MINORWide investment range ($116K-$717.5K spread of 518%) suggests inconsistent unit economics or unclear cost structures
  5. 05MED6% royalty on undisclosed revenues creates earnings opacity — franchisees cannot benchmark performance against peers
  6. 06HIGHNo litigation disclosed but combined with going concern flag raises questions about whether legal issues are being withheld

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.