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D75/100FDD 2025

Grace Integrated — Litigation & Risk

Health & Wellness - 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
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
3 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. 01HIGHGoing Concern status indicates franchisor financial distress or viability questions
  2. 02MEDOnly 5 units system-wide suggests minimal scale, limited support infrastructure, and high collapse risk
  3. 03MINORNo average revenue or net income disclosure (Item 19) prevents ROI validation and suggests poor unit economics
  4. 04MINORUnprotected territory creates direct competition risk between franchisees in same market
  5. 05MINORExtremely low monthly royalty ($500/provider) may indicate franchisor revenue crisis and inability to fund support
  6. 06MINORHigh initial investment ($167,960–$317,890) against unknown returns creates severe cash flow mismatch
  7. 07MED10-year term locks franchisee into potentially failing system with limited exit flexibility
  8. 08MEDUnknown/undisclosed growth trajectory suggests stagnation or contraction in unit development

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.