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D75/100FDD 2024
How To Manage A Small Law Firm — Litigation & Risk
Other · 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
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
What drove the 75/100 rating
Risk Score Breakdown
- 01MINOROnly 1 operating unit despite franchise model suggests system is non-existent or collapsed
- 02MINORExtremely high royalty rate (80% of Foundation dues) leaves minimal franchisee margin on core product
- 03MINORNo average revenue or net income disclosure prevents informed investment decision
- 04MINORNo protected territory in service-based franchise creates direct competition risk with franchisor
- 05MINOR5-year term with high $45,000 upfront fee for unproven single-unit model
- 06MINORRoyalty structure heavily favors franchisor over franchisee profitability
- 07MEDNo disclosed growth trajectory or unit expansion plan indicates stagnant or failing system
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.