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
New Jersey
State whose law governs disputes — relevant if you're not based there
What drove the 65/100 rating
Risk Score Breakdown
- 01MINOROnly 1 unit in system with unknown growth trajectory indicates nascent/stalled franchise with no proven scalability
- 02MEDNet income not disclosed despite $85,980 average revenue — impossible to assess actual profitability or ROI on $88,770-$253,225 investment
- 03MINORNo territory protection creates direct competition risk; franchisor can open units in your market
- 04MINORMinimum weekly royalty fee requirement (amount unstated) could exceed 7% and create cash flow pressure on $85,980 revenue base
- 05MINORHigh franchise fee ($45,000) represents 52% of minimum investment with only 1 existing unit to validate business model
- 06MINOR10-year term locks capital into unproven system with single data point
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.