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A53/100FDD 2022

Morrison Plus Property Inspections — Litigation & Risk

Real Estate · 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
53 / 100
FranchiseVerdict composite
Rating
STRONG
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
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
California
State whose law governs disputes — relevant if you're not based there

What drove the 53/100 rating

Risk Score Breakdown

  1. 01MEDNet income not disclosed in FDD Item 19 — unable to validate actual profitability claims against $181,012 average revenue
  2. 02MEDOnly 11 units system-wide with 11.1% YoY growth indicates very small, early-stage franchise with limited scale and support infrastructure
  3. 03MINORTiered royalty structure (7.0% down to 5.5%) suggests franchisor may struggle to reach profitability at lower revenue thresholds, creating incentive misalignment
  4. 04MINORAverage revenue of $181,012 falls in highest royalty bracket (7.0%) — franchisees must generate $400,000+ annually to access lower royalty rates, indicating potential earning barriers
  5. 05HIGHNo litigation disclosure combined with absence of net income figures raises transparency concerns about financial performance validation

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.