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B61/100FDD 2025

Let’s Get Moving — Litigation & Risk

Other · 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
61 / 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
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
Delaware
State whose law governs disputes — relevant if you're not based there

What drove the 61/100 rating

Risk Score Breakdown

  1. 01MEDOnly 3 units in system with unknown growth trajectory indicates extremely limited scale and unproven model replicability
  2. 02MEDNo disclosed net income despite $472k average revenue raises profitability questions and suggests potential margin pressure from 6.5% royalty
  3. 03HIGHGoing concern status is false/unclear, suggesting potential financial instability at franchisor level
  4. 04MINORHigh investment range ($111,900-$244,450) relative to only 3 franchises suggests unproven unit economics and ROI risk
  5. 05HIGHNo litigation disclosure combined with micro-franchise size makes it difficult to assess franchisor track record and dispute history

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.