FranchiseVerdict
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B60/100FDD 2026

Hang It Up TVs — Litigation & Risk

Automotive - Repair & Service · 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
60 / 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
Illinois
State whose law governs disputes — relevant if you're not based there

What drove the 60/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 operating unit with unknown growth trajectory indicates unproven franchise model scalability
  2. 02MINORNo protected territory creates direct competition risk and limits franchisee defensibility
  3. 03MINORMinimum weekly royalty fee structure (in addition to 6% of sales) may squeeze margins on lower-revenue weeks
  4. 04MINORHigh initial investment ($49,850–$84,900) relative to single-unit track record creates unvalidated ROI model
  5. 05MINORNo Item 19 financial performance representations limit ability to validate $123,394 average net income claim
  6. 06MINOR10-year term is lengthy for unproven concept with minimal franchisee reference base

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.