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F85/100FDD 2025

Instant Imprints — Litigation & Risk

Business Services - Printing & Signs · FDD Items 3, 4 & 5

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Moderate — Review

3 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
3
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
85 / 100
FranchiseVerdict composite
Rating
AVOID
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
48
Government-backed loans issued
Default rate
48.9%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
22 loans
Loans charged off or defaulted
Total loan volume
$7.7M
Avg loan size
$160K
Participating lenders
24

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
Delaware
State whose law governs disputes — relevant if you're not based there

What drove the 85/100 rating

Risk Score Breakdown

  1. 01MEDUnit count declined 12.5% YoY (45 units), indicating system contraction and potential market saturation or franchisee dissatisfaction
  2. 02MEDNo average net income disclosed in Item 19 — prevents ROI validation and suggests weak unit economics or franchisor reluctance to disclose profit data
  3. 03HIGHMultiple litigation cases including breach of contract and shareholder disputes signal operational friction and potential governance issues within franchisor leadership
  4. 04MINORHigh initial investment ($187,903–$364,862) combined with declining unit base creates elevated risk of poor capital recovery
  5. 05MINORTiered royalty structure (6%→4%→2%) incentivizes high-volume sales but only benefits top 20% of franchisees; median franchisees likely cap at $1M revenue paying full 6% rate

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.