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
61 / 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
49
Government-backed loans issued
Default rate
23.3%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
10 loans
Loans charged off or defaulted
Total loan volume
$10.7M
Avg loan size
$219K
Participating lenders
32
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
Minnesota
State whose law governs disputes — relevant if you're not based there
What drove the 61/100 rating
Risk Score Breakdown
- 01MINORStagnant unit growth of only 2.9% YoY with only 35 locations suggests mature/declining system
- 02MINORNo Item 19 financial performance disclosure despite $1.58M average revenue — opacity around actual franchisee profitability
- 03MINORNet income margin of only 9.3% ($146,957 on $1.58M sales) is thin and leaves little room for error or unexpected costs
- 04MINORHigh initial investment ($335K-$443K) combined with slow growth indicates recovering or struggling system
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.