Liquivida: Litigation & Risk
Healthcare · FDD Items 3, 4 & 5
Elevated Risk
2 cases disclosed in FDD Items 3 and 4. Bankruptcy disclosed in Item 4.
FDD Items 3 & 4
Litigation Metrics
- Cases disclosed
- 2
- Total from FDD Items 3 and 4
- Bankruptcy (Item 4)
- Disclosed
- Franchisor or officer bankruptcy
- Verdict score
- 49 / 100
- FranchiseVerdict composite · higher is better
- Rating
- B
- A / B / C / D / F verdict grade
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Charge-off rate is the share of loans that were charged off or settled for less than the full balance.
- Total 7(a) loans
- 15
- Government-backed loans issued
- Charge-off rate
- 0.0%
- vs 16% franchise average
- 5-yr charge-off rate
- N/A
- Defaults
- 0 loans
- Loans charged off or defaulted
- Total loan volume
- $8.1M
- Avg loan size
- $541K
- Participating lenders
- 7
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
- FL
- State whose law governs disputes. Relevant if you're not based there
Extracted from FDD Item 3
Litigation Detail
Two related cases involving the same terminated franchisee (Todaro Bro, Inc.): (1) LQV v. Todaro Bro - franchisor filed lawsuit for trademark infringement and non-compete violations, settled for $510,000 paid by franchisee; (2) Todaro Bro v. LQV - franchisee filed arbitration alleging misrepresentation of investment costs and tortious interference; franchisor prevailed and was awarded $446,000+ in damages, settled globally for $510,000.
What drove the 49/100 verdict
Risk Score Breakdown
- 01HIGHGoing Concern status is False, indicating potential financial instability at franchisor level
- 02HIGHSignificant litigation history with trademark enforcement and breach of contract allegations affecting franchisee confidence
- 03MEDNet income not disclosed despite $1.124M average revenue, making ROI projections impossible to validate
- 04MINORWide investment range ($97K-$1M+) suggests inconsistent unit economics or hidden costs not clearly explained
- 05MINOROnly 15 units with 20% YoY growth is modest for a wellness/IV therapy concept; small system increases franchisor risk
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.