FranchiseVerdict
MOXIE SALON & BEAUTY BAR logo
A47/100FDD 2025

Moxie Salon & Beauty Bar — Litigation & Risk

Personal Services - Beauty & Salon · FDD Items 3, 4 & 5

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
47 / 100
FranchiseVerdict composite
Rating
STRONG
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
18
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

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

What drove the 47/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status is FALSE — indicates financial instability or accounting irregularities at corporate level
  2. 02HIGHActive litigation over non-compete/non-solicitation suggests franchisee disputes and potential enforcement challenges
  3. 03MINORNo net income disclosure (Item 19) prevents ROI validation — 17.6% YoY growth may mask profitability problems
  4. 04MINORUnprotected territory creates direct competition risk between franchisees and potential cannibalization
  5. 05MINORHigh initial investment ($225,900–$464,000) combined with 6% royalty on $818K avg revenue leaves thin margin for error
  6. 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.