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A34/100FDD 2025
Hand and Stone Massage and Facial Spa — Litigation & Risk
Health & Wellness - Other · FDD Items 3, 4 & 5
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
34 / 100
FranchiseVerdict composite
Rating
STRONG
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
194
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
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
Pennsylvania
State whose law governs disputes — relevant if you're not based there
What drove the 34/100 rating
Risk Score Breakdown
- 01HIGH2017 litigation settled with franchisor buying back franchise for $380k and assuming $280k debt—signals severe unit-level performance issues and potential systemic problems
- 02MEDNet income not disclosed in FDD—inability to verify profitability claims; average revenue of $1.4M means little without expense breakdown
- 03HIGHGoing Concern = False—franchisor may have liquidity or operational sustainability concerns that could impact support and franchise viability
- 04MINOR10.1% YoY unit growth masks potential churn; 595 units is mid-sized and growth rate is modest for a maturing brand (2007 founding)
- 05MEDHigh initial investment ($578k-$871k) paired with undisclosed net income creates ROI uncertainty; royalty escalation to 6% increases year-2+ burden
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.