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A50/100FDD 2026

Iron Valley Real Estate — 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
50 / 100
FranchiseVerdict composite
Rating
STRONG
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
12
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
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
Pennsylvania
State whose law governs disputes — relevant if you're not based there

What drove the 50/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 financial performance data disclosed — impossible to validate ROI or profitability claims
  2. 02MEDSlow unit growth of 4.5% YoY suggests limited scalability or franchisee satisfaction issues
  3. 03MINORTransaction-based royalty model ($150/side) creates unpredictable revenue and may incentivize cutting corners
  4. 04MINORUnprotected territory creates direct competition risk between franchisees and cannibalization potential
  5. 05MINOR2019 regulatory violation for unregistered franchise sale indicates compliance/legal awareness issues
  6. 06MINORWide investment range ($58.9K–$207K) suggests inconsistent startup costs or undefined business model

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.