D72/100FDD 2024
LandJet — Litigation & Risk
Other · FDD Items 3, 4 & 5
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
72 / 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
Iowa
State whose law governs disputes — relevant if you're not based there
What drove the 72/100 rating
Risk Score Breakdown
- 01MEDCatastrophic unit decline of 66.7% YoY (from ~18 to 6 units) indicates severe system contraction and franchisee dissatisfaction
- 02MINORZero financial disclosure (revenue and net income) prevents ROI validation and suggests potential FDD Item 19 absence or poor performance metrics
- 03MINORHigh initial investment ($114.5K-$368K) paired with declining unit count creates elevated risk of capital loss
- 04MINORNarrow 5-year term limits franchisee amortization window for $49.5K franchise fee plus build-out costs
- 05MINORTiered royalty structure (7%-5%) reduces profitability in early/low-revenue phases when margins are tightest
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.