FranchiseVerdict
JPAR - Real Estate logo
B63/100FDD 2025

JPAR - Real Estate — Litigation & Risk

Real Estate · FDD Items 3, 4 & 5

Back to overview

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
63 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
0.5 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
Texas
State whose law governs disputes — relevant if you're not based there

What drove the 63/100 rating

Risk Score Breakdown

  1. 01MINORStagnant unit growth (2.2% YoY) suggests market saturation or franchisee dissatisfaction in a 72-unit system
  2. 02MEDThree active class-action antitrust lawsuits against affiliate regarding commission practices create legal and reputational risk
  3. 03MEDNo average revenue or net income disclosure (missing Item 19) prevents assessment of franchisee profitability
  4. 04MINORPer-transaction royalty model ($150-$220) creates unpredictable income and incentivizes high-volume commodity sales over quality
  5. 05MINORUnprotected territory exposes franchisees to direct competition from other JPAR franchisees and corporate-owned locations
  6. 06HIGHGoing concern notation indicates potential financial instability at franchisor level
  7. 07MINORIndiana administrative order suggests compliance or regulatory issues with franchise registration/operations

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.