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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
50 / 100
FranchiseVerdict composite
Rating
STRONG
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
Utah
State whose law governs disputes — relevant if you're not based there
What drove the 50/100 rating
Risk Score Breakdown
- 01MEDNet income not disclosed in FDD — unable to validate actual profitability despite $484k average revenue claim
- 02MINORUnit count declining 1.6% YoY (64 units) — suggests market saturation, retention issues, or uncompetitive model
- 03MINORTerritory not protected — franchisees compete directly with other Joe Homebuyer franchisees and corporate, creating cannibalization risk
- 04MINORWide investment range ($131k-$445k) with no clarity on what drives 3.4x variance — suggests inconsistent startup costs or hidden expenses
- 05MINOR5-9% royalty on 'Net Proceeds' is vague terminology — unclear if calculated before/after operating expenses, creating audit risk
- 06MINOR7-year term is relatively short — insufficient runway to recoup franchise fee and build sustainable customer base
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.