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D75/100FDD 2026

Golf VX — Litigation & Risk

Other · FDD Items 3, 4 & 5

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
75 / 100
FranchiseVerdict composite
Rating
CAUTION
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
Illinois
State whose law governs disputes — relevant if you're not based there

What drove the 75/100 rating

Risk Score Breakdown

  1. 01MINOROnly 3 units systemwide with unknown growth trajectory indicates minimal market validation and potential system contraction risk
  2. 02HIGHActive litigation involving founder/principal alleging breach of contract and fraudulent concealment creates credibility and operational uncertainty
  3. 03MEDNo disclosed average revenue or net income data prevents ROI assessment and suggests either poor performance or deliberate opacity
  4. 04MEDHigh investment range ($339K-$2.5M) with 6% royalty on undisclosed sales creates profitability uncertainty and potential cash flow stress
  5. 05HIGHGoing concern status is FALSE, which may indicate accounting/solvency red flags at corporate level
  6. 06MINORTiny franchisee base (3 units) means minimal peer support network and franchisor scalability concerns
  7. 07HIGH10-year term is long commitment for an unproven, litigation-encumbered, sub-5-unit system

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.