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B65/100FDD 2024

Godog — Litigation & Risk

Personal Services - Pet Care · 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
Georgia
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MEDOnly 3 operating units suggests extremely limited track record and system viability — statistically insufficient to validate the business model
  2. 02HIGHGoing Concern status is FALSE, indicating the franchisor itself may face financial or operational stability issues
  3. 03MINORHigh initial investment ($1.99M–$3.70M) with only 3 reference units creates severe due diligence risk and revenue verification challenges
  4. 04HIGHNo disclosed litigation does not mitigate systemic risk when combined with minimal unit count and going concern status
  5. 05MINORAvg Net Income of $581K on $2.1M revenue (27.6% net margin) appears exceptionally high and requires verification — potential data manipulation or cherry-picked performers
  6. 06MINORUnknown unit growth trajectory with only 3 units makes ROI projections highly speculative; no historical growth data provided
  7. 07MED7% royalty on gross revenue (not net) combined with high CAPEX suggests franchisees may struggle to achieve disclosed net income figures

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.