FranchiseVerdict
D72/100FDD 2025

Momi Land — 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
72 / 100
FranchiseVerdict composite
Rating
CAUTION
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
Non-compete
3 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
Ohio
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern Warning: Franchisor flagged as not a going concern—indicates potential financial distress or viability questions
  2. 02MEDUndisclosed Net Income: No Item 19 financial disclosure prevents validation of profitability claims; $528K avg revenue alone doesn't prove unit economics work
  3. 03MEDMinimal Unit Count: Only 3 franchised units suggests extremely limited track record, market validation failure, or recent contraction
  4. 04MINORUnknown Growth Trajectory: No disclosure of unit growth rate or historical performance; could indicate stagnation or recent closures
  5. 05MINORHigh Investment-to-Revenue Ratio: $305K–$544K investment against $529K avg revenue creates thin margin for error and long payback period
  6. 06MINORAggressive Royalty Structure: 7% royalty on gross sales (not net) compounds pressure on already-tight unit economics

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.