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B66/100FDD 2025

Montessori Kids Universe — Litigation & Risk

Education - Children's Programs · FDD Items 3, 4 & 5

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Moderate — Review

2 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
66 / 100
FranchiseVerdict composite
Rating
MODERATE
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
31
Government-backed loans issued
Default rate
9.1%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$19.5M
Avg loan size
$628K
Participating lenders
17

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

What drove the 66/100 rating

Risk Score Breakdown

  1. 01HIGHTwo settlements within 3 years (2017 & 2019) indicating systemic compliance and ethics issues, including fraud allegations
  2. 02MINOROnly 19 units with unknown growth trajectory suggests stagnant or declining system; minimal scale for support infrastructure
  3. 03MEDNo Item 19 (average unit economics) disclosed — inability or unwillingness to share net income data is a major transparency red flag
  4. 04HIGHGoing Concern status = FALSE suggests franchisor may have financial instability or legal impediments to operations
  5. 05MEDHigh initial investment ($782K–$1.7M) relative to disclosed average revenue ($1.3M) leaves razor-thin margins before 7% royalty, rent, and labor
  6. 06HIGH2019 fraud and deceptive trade practices settlement indicates franchisees have pursued legal action for misrepresentation

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.