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B57/100FDD 2024

Instant Imprints (Area Representative) — Litigation & Risk

Other · FDD Items 3, 4 & 5

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Moderate — Review

5 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
5
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
57 / 100
FranchiseVerdict composite
Rating
MODERATE
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
56
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
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
3 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
No
Franchisor can match any purchase offer when you try to sell
Governing law
Delaware
State whose law governs disputes — relevant if you're not based there

What drove the 57/100 rating

Risk Score Breakdown

  1. 01HIGHOne active pending litigation (breach of contract/fraud) plus four prior settled cases involving breach of contract, labor disputes, and royalty disagreements indicates systemic franchisor-franchisee relationship problems
  2. 02MEDOnly 15 units system-wide with unknown growth trajectory suggests limited scale, potential system contraction, and weak franchisee recruitment/retention
  3. 03MEDNo Item 19 (Average Unit Volume/earnings claim) disclosed—unable to validate if $82,800–$96,500 investment can generate acceptable ROI or break-even within reasonable timeframe
  4. 04MEDRoyalty rate not disclosed in summary—hidden or variable royalties may erode already-thin margins typical in printing/promotional products sector
  5. 05MINORArea Representative model with undefined territory protection scope and no unit growth data raises questions about market saturation and cannibalizing adjacent franchisees
  6. 06MINORHigh franchise fee ($75,000) relative to total investment (~82–85% of total) with no earnings disclosure creates significant downside risk if business underperforms

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.