FranchiseVerdict
Kitset Assembly Services logo
B65/100FDD 2025

Kitset Assembly Services — Litigation & Risk

Other · FDD Items 3, 4 & 5

Back to overview

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
65 / 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
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
Arizona
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MINORZero existing franchise units with unknown growth trajectory raises questions about system viability and market validation
  2. 02MINORNo Item 19 disclosure of average revenue or net income prevents ROI assessment on $95,700–$146,050 investment
  3. 03MED$1,000/month royalty ($12,000/year) on undisclosed revenue creates uncertainty about profitability threshold
  4. 04MINORHigh franchise fee ($49,500) represents 52% of minimum total investment with no performance data to justify cost
  5. 05MED5-year term is shorter than industry standard (10 years), suggesting limited franchisor confidence or increased renewal uncertainty
  6. 06MINORComplete absence of operating franchisee base eliminates peer validation and reference checks

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.