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B65/100FDD 2026

Labor Finders — Litigation & Risk

Business Services - Staffing · FDD Items 3, 4 & 5

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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
65 / 100
FranchiseVerdict composite
Rating
MODERATE
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
Not waived
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
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MINORUnit count declining 3.6% YoY (166 units) indicates shrinking franchise system
  2. 02MINORNo Item 19 financial disclosures (avg revenue/net income) prevents ROI validation
  3. 03MINORWide investment range ($159.5K-$363.2K) suggests inconsistent unit economics or territory variance
  4. 04HIGHNo 'going concern' status is positive, but combined with unit decline raises sustainability questions
  5. 05MINORStaffing/labor franchise model is highly competitive with thin margins and operational complexity

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.