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D72/100FDD 2025

My City Allstars — Litigation & Risk

Other · 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
72 / 100
FranchiseVerdict composite
Rating
CAUTION
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
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MEDOnly 3 franchise units in system with no disclosed growth trajectory — suggests minimal market validation or severe attrition
  2. 02MINORNo average revenue or net income disclosure (Item 19) — impossible to assess ROI on $114,400-$265,000 investment
  3. 03MINORHigh franchise fee ($55,000) plus 7% royalty with $10,000 minimum annual floor creates significant fixed costs with unknown break-even point
  4. 04MINOR10-year term is lengthy given franchise's micro-scale and lack of proven unit economics
  5. 05HIGHNo disclosed going concern issues but 3-unit system suggests franchisor may struggle to provide adequate support infrastructure

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.