A53/100FDD 2025
Launch Family Entertainment — 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
53 / 100
FranchiseVerdict composite
Rating
STRONG
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
Rhode Island
State whose law governs disputes — relevant if you're not based there
What drove the 53/100 rating
Risk Score Breakdown
- 01MINORHigh initial capital requirement ($3.5M–$6.5M) with modest average net income ($375K) yields 5.6–9.3 year payback period
- 02MINOROnly 14.3% YoY unit growth suggests maturing/saturating market; unclear if growth is accelerating or decelerating
- 03MINOR6% royalty on gross receipts (not net) means franchisees pay on revenue even during unprofitable periods
- 04MEDNo Item 19 (financial performance representations) disclosed; average figures may not reflect typical franchisee reality
- 05MED31-unit system is small; limited brand recognition and marketing leverage compared to larger competitors
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.