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D72/100FDD 2024

Integra Realty Resources — Litigation & Risk

Real Estate · FDD Items 3, 4 & 5

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
72 / 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
1 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
Colorado
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MINORUnit count declining 6.0% YoY (47 units) signals contracting system and potential franchisee dissatisfaction
  2. 02HIGHActive litigation with $1M+ damages claim pending bench ruling creates uncertainty and potential liability exposure for franchise system
  3. 03MEDNo average revenue or net income disclosure (missing Item 19) prevents assessment of franchisee profitability and ROI
  4. 04MINORUnprotected territory creates direct competition risk between franchisees and headwinds for unit economics
  5. 05MEDHigh royalty rate (3.7%) combined with undisclosed revenue makes cost-benefit analysis impossible for prospective franchisees
  6. 06MINOR5-year term length is relatively short, creating renewal uncertainty and reducing long-term planning ability

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.