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A45/100FDD 2025

Lightbridge Academy — Litigation & Risk

Education - Children's Programs · 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
45 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
41
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$62.2M
Avg loan size
$1.5M
Participating lenders
12

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
New Jersey
State whose law governs disputes — relevant if you're not based there

What drove the 45/100 rating

Risk Score Breakdown

  1. 01MINORNo territory protection exposes franchisees to direct competition from other Lightbridge locations
  2. 02MEDWide investment range ($1.0M–$7.6M) suggests inconsistent unit economics or hidden costs not fully disclosed
  3. 03MINORModest net income ($411K average) yields only 15.8% net margin on average revenue, resulting in ~3.9-year payback period before ROI
  4. 04MINOR12.7% YoY unit growth is healthy but modest for a franchisor, suggesting market saturation or franchisee acquisition challenges
  5. 05MINORHigh royalty rate (7%) combined with unprotected territory creates pressure on franchisee profitability in competitive markets
  6. 06MINORChildcare is labor-intensive with thin margins; operational execution risk is high and turnover-dependent

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.