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B65/100FDD 2025

Intelligent Office — Litigation & Risk

Other · FDD Items 3, 4 & 5

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Moderate — Review

4 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
4
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
65 / 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
3
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
Total loan volume
$1.9M
Avg loan size
$632K
Participating lenders
3

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

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MINORUnit count declining 4.7% YoY with only 41 locations remaining indicates shrinking franchise system
  2. 02MEDNo Item 19 (Average Net Income) disclosed — unable to validate profitability claims or ROI despite $228k-$1.5M investment range
  3. 03MINORMultiple regulatory consent orders across affiliate brands (Signarama 1993/1996, TGG 2021/2022) signal pattern of compliance issues within parent company
  4. 04MINORWide investment range ($228k-$1.5M+) with average revenue of $601k suggests inconsistent unit economics and unclear path to profitability
  5. 05MINOR35-year franchise term is unusually long and locks franchisees into agreement with declining brand momentum
  6. 06MINORRoyalty structure (6% or $1,500 minimum) means low-revenue units may be unprofitable after paying franchisor 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.