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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
75 / 100
FranchiseVerdict composite
Rating
CAUTION
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
Delaware
State whose law governs disputes — relevant if you're not based there
What drove the 75/100 rating
Risk Score Breakdown
- 01MEDZero disclosed operating units — impossible to validate system viability or franchisee success
- 02MINORNo average revenue or net income provided — cannot assess ROI or profitability claims
- 03HIGHGoing Concern status is FALSE — indicates franchisor financial distress or operational instability
- 04MINORNo Item 19 financial performance representations — suggests franchisor cannot or will not disclose earnings data
- 05MINORTerritory is unprotected — franchisees face direct competition from other JUST JUNK locations
- 06MINOR8% royalty on unknown revenue base makes profitability projections impossible to validate
- 07MINORUnknown franchise unit growth trajectory — cannot assess whether system is expanding or contracting
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.