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B62/100FDD 2023

IRIS Environmental Laboratories — Litigation & Risk

Real Estate · FDD Items 3, 4 & 5

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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
62 / 100
FranchiseVerdict composite
Rating
MODERATE
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
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
New Jersey
State whose law governs disputes — relevant if you're not based there

What drove the 62/100 rating

Risk Score Breakdown

  1. 01MEDNet income not disclosed in FDD Item 19 — unable to validate profitability claims against $71,703 average revenue
  2. 02MINOROnly 10 units system-wide with unknown growth trajectory — insufficient scale and expansion data raises sustainability concerns
  3. 03MINOREscalating royalty structure (5%-7%) combined with $250-$750 monthly minimums creates cash flow pressure for slower-growth franchisees
  4. 04MINORLow average revenue ($71,703) relative to $31,300-$62,510 total investment suggests 44-87% first-year payback period assumption with no Item 19 support
  5. 05HIGHGoing Concern status 'False' suggests potential financial instability or recent restructuring of franchisor operations
  6. 06MED5-year term with protected territory but minimal unit count indicates limited network support and peer-learning resources

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.