B67/100FDD 2022
Intelligent Leadership Executive Coaching — Litigation & Risk
Business Services - 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
67 / 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
8
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
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
Connecticut
State whose law governs disputes — relevant if you're not based there
What drove the 67/100 rating
Risk Score Breakdown
- 01MEDExtremely high royalty rate (25%) combined with undisclosed average revenue creates unclear unit economics and profitability concerns
- 02MINORNo Item 19 financial performance disclosure — cannot verify if the 16 operating units are actually profitable or generating claimed returns
- 03HIGHGoing Concern designation indicates potential financial instability or business model viability questions at franchisor level
- 04MINORUnprotected territory creates direct competition risk — franchisees may cannibalize each other's client base with no geographic safeguards
- 05MINORRapid growth (66.7% YoY) with only 16 units suggests nascent system lacking maturity, track record, and operational infrastructure
- 06MINORHigh initial investment ($113k-$124k) + 25% royalty burden may be unsustainable for solo coaching practices with variable client acquisition
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.