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D69/100FDD 2023

Mossy Oak Properties — Litigation & Risk

Real Estate · FDD Items 3, 4 & 5

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Moderate — Review

3 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
3
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
69 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

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

What drove the 69/100 rating

Risk Score Breakdown

  1. 01MINORUnit count declining 9.2% YoY (93 units) indicates shrinking franchise system and potential franchisee dissatisfaction
  2. 02MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) prevents validation of income claims and profitability
  3. 03HIGHThree litigation cases including two against franchisor by former franchisee and shareholder suggest operational/contractual disputes and governance issues
  4. 04MED6% royalty on gross commissions (real estate model) creates revenue volatility and incentivizes aggressive sales practices
  5. 05HIGHGoing Concern status is False, but declining units + litigation + no financial transparency raises sustainability questions

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.