Moderate — Review
5 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
5
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
59 / 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
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
No
Franchisor can match any purchase offer when you try to sell
Governing law
Missouri
State whose law governs disputes — relevant if you're not based there
What drove the 59/100 rating
Risk Score Breakdown
- 01MINORFour consent orders from state securities divisions across multiple states indicate systemic franchise disclosure and registration compliance failures
- 02MINOR2020 class-action settlement regarding misclassification of publishers as independent contractors suggests potential employment law exposure and operational model vulnerability
- 03MEDFinancial performance metrics (average revenue and net income) not disclosed in FDD Item 19, making ROI assessment impossible and indicating potential weak unit economics
- 04MINORUnit growth of 14.9% YoY is modest for a franchise system and may mask higher churn rates not reflected in net unit count
- 05MINORRevenue model tied to 'Advertising Value' (7% royalty) is opaque—unclear how advertising value is calculated, audited, or enforced
- 06HIGHGoing concern status suggests potential financial instability at franchisor level, raising questions about support, training, and long-term viability
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.