FDD 2022

HairClub — Litigation & Risk

Personal Services - Beauty & Salon · FDD Items 3, 4 & 5

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Moderate — Review

3 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed

Total from FDD Items 3 and 4

Bankruptcy (Item 4)

—

Franchisor or officer bankruptcy

Overall risk score

—

FranchiseVerdict composite

Rating

—

STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans

Government-backed loans issued

Default rate

0.0%

vs <3% typical · system-wide

5-yr default rate

—

Defaults

0 loans

Loans charged off or defaulted

Total loan volume

$536K

Avg loan size

$536K

Participating lenders

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration

Not required

You retain the right to sue in court

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

Florida

State whose law governs disputes — relevant if you're not based there

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.