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A37/100FDD 2025

Just Between Friends — Litigation & Risk

Education - Children's Programs · FDD Items 3, 4 & 5

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Moderate — Review

2 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
37 / 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
10
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
$1.3M
Avg loan size
$125K
Participating lenders
7

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
3 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
Pennsylvania
State whose law governs disputes — relevant if you're not based there

What drove the 37/100 rating

Risk Score Breakdown

  1. 01MINORStagnant unit growth (0.7% YoY) suggests market saturation or franchisee dissatisfaction despite 151 existing locations
  2. 02MEDNet income not disclosed in Item 19 prevents ROI analysis; only average revenue ($376k) provided without profitability context
  3. 03MINORRoyalty structure with $5,250-$10,500 annual minimums creates fixed cost burden even during slow sales months, reducing franchisee flexibility
  4. 04HIGHOfficer litigation history (Robert Petre/Osage LLC) raises governance and financial management concerns, though cases dismissed
  5. 05MEDHigh initial investment ($66.6k-$97.5k) relative to disclosed revenue and unknown profitability creates recovery risk

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.