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B62/100FDD 2024

Natural Awakenings — Litigation & Risk

Business Services - Printing & Signs · 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
62 / 100
FranchiseVerdict composite
Rating
MODERATE
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
No
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 62/100 rating

Risk Score Breakdown

  1. 01MEDSystem contracting: 47 units with -2.1% YoY decline indicates shrinking franchise base and potential market saturation or franchisee dissatisfaction
  2. 02MINORNo financial disclosure: Franchisor does not disclose average revenue or net income (Item 19), making ROI impossible to validate before investment
  3. 03MINORHigh initial investment relative to unknowns: $59,550–$86,275 total investment with no published performance data creates blind investment scenario
  4. 04MINORModest minimum royalty floor: $250/month (months 1–6) may insufficient to support franchisor operations, suggesting thin margins or weak system support
  5. 05MINOR5-year term with high franchise fee: $49,500 fee on a 5-year term (vs. typical 10-year) limits ability to recover costs and profit
  6. 06MINORDeclining unit count in wellness category: Health/wellness franchises are typically growth sectors; contraction suggests competitive pressure or brand weakness

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.