B66/100FDD 2025
Kid to Kid — Litigation & Risk
Education - Children's Programs · FDD Items 3, 4 & 5
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
66 / 100
FranchiseVerdict composite
Rating
MODERATE
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
98
Government-backed loans issued
Default rate
20.3%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
13 loans
Loans charged off or defaulted
Total loan volume
$22.2M
Avg loan size
$227K
Participating lenders
32
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 66/100 rating
Risk Score Breakdown
- 01MINORUnit count declining 2.0% YoY (119 units) suggests system contraction and potential market saturation or franchisee dissatisfaction
- 02HIGH2014 litigation involved franchisor liability for inadequate support ($186,750 judgment) — evidence of operational/advisory gaps that may persist
- 03HIGHNo Item 19 (going concern = false) means franchisor provides no audited financial performance claims, forcing reliance on limited average data that may not reflect typical unit performance
- 04MINORNet income ($91,329) represents only 9.7% margin on average revenue ($938,483), leaving minimal buffer for underperformance or unexpected costs
- 05HIGHLitigation history combined with declining unit count suggests franchisor-franchisee relationship friction and possible reputational damage
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.