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D75/100FDD 2025
Handwritten Collection — Litigation & Risk
Lodging - Hotels & Motels · FDD Items 3, 4 & 5
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
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
No
Franchisor can match any purchase offer when you try to sell
Governing law
New York
State whose law governs disputes — relevant if you're not based there
What drove the 75/100 rating
Risk Score Breakdown
- 01HIGHGoing Concern status indicates financial distress or viability questions at corporate level
- 02MINOROnly 1 unit in system suggests either brand is new/unproven or existing unit(s) have failed
- 03MINORNo average revenue or net income disclosure prevents ROI validation and suggests poor unit economics
- 04MINORNo territory protection exposes franchisee to direct competition from other franchisees or corporate
- 05MEDUnusually high initial investment ($1.375M) with zero disclosed average unit profitability creates extreme risk
- 06MINORUnknown growth trajectory with single unit provides no evidence of scalability or market demand
- 07MINOR20-year term locks franchisee into long commitment with unproven business model
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.