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
55 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID
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
Pennsylvania
State whose law governs disputes — relevant if you're not based there
What drove the 55/100 rating
Risk Score Breakdown
- 01MEDNo Item 19 financial performance data disclosed — impossible to validate ROI claims or typical unit economics
- 02HIGHGoing Concern status is FALSE, suggesting potential financial instability or accounting issues at franchisor level
- 03MINORMinimum royalty of $25,000/year creates fixed cost burden regardless of revenue; franchisees hitting $416,667 in AGR break even on 6% rate
- 04MINORWide investment range ($45K–$258.5K) indicates highly variable startup costs and unclear initial capital requirements
- 05MINOR452 units with unknown growth trajectory — no disclosure of unit openings/closures makes it impossible to assess system health
- 06MINORSliding royalty scale heavily incentivizes high-volume operations; smaller franchisees subsidize system through minimum fees
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.