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
80 / 100
FranchiseVerdict composite
Rating
AVOID
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
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
Michigan
State whose law governs disputes — relevant if you're not based there
What drove the 80/100 rating
Risk Score Breakdown
- 01MINOROnly 6 units in system with unknown growth trajectory suggests minimal brand traction and uncertain scalability
- 02MINORNo average revenue or net income disclosure (no Item 19) prevents assessment of actual franchisee profitability and ROI
- 03MINORHigh initial investment range ($238K-$833K) combined with $1,000 minimum monthly royalty creates significant fixed cost burden with unproven unit economics
- 04HIGHGoing concern status is FALSE — indicates potential financial distress or structural viability issues at franchisor level
- 05MEDExtremely limited franchisee base (6 units) means minimal support infrastructure, peer network, and franchisor resources for training and operational assistance
- 06MINOR20-year term locks franchisees into agreement with young, unproven brand lacking performance history
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.