Moxie Salon & Beauty Bar: Litigation & Risk
Personal Care & Beauty · FDD Items 3, 4 & 5
Moderate: Review
1 case disclosed in FDD Items 3 and 4.
FDD Items 3 & 4
Litigation Metrics
- Cases disclosed
- 1
- Total from FDD Items 3 and 4
- Bankruptcy (Item 4)
- None
- Franchisor or officer bankruptcy
- Verdict score
- 84 / 100
- FranchiseVerdict composite · higher is better
- Rating
- A
- 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
- 10
- 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
- $2.5M
- Avg loan size
- $249K
- Participating lenders
- 4
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
- Not waived
- 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
- NJ
- State whose law governs disputes. Relevant if you're not based there
Extracted from FDD Item 3
Litigation Detail
Moxie BBB Franchising LLC v. Jennifer Caluri, JC Consulting II, Inc., and JC Marketing Inc. (Superior Court of New Jersey, Bergen County, No. BER-L-003912-24) — suit to enforce covenant-not-to-compete and non-solicitation.
What drove the 84/100 verdict
Risk Score Breakdown
- 01HIGHGoing Concern status is FALSE — indicates financial instability or accounting irregularities at corporate level
- 02HIGHActive litigation over non-compete/non-solicitation suggests franchisee disputes and potential enforcement challenges
- 03MINORNo net income disclosure (Item 19) prevents ROI validation — 17.6% YoY growth may mask profitability problems
- 04MINORUnprotected territory creates direct competition risk between franchisees and potential cannibalization
- 05MINORHigh initial investment ($225,900–$464,000) combined with 6% royalty on $818K avg revenue leaves thin margin for error
- 06MINORModest unit count (25 locations) with only 4-unit net growth YoY suggests slower scaling than claimed
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.