A44/100FDD 2026
Navis Pack & Ship, Handle With Care Packaging Store, Pak Mail Freight — Litigation & Risk
Business Services - Shipping & Postal · FDD Items 3, 4 & 5
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
44 / 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
10
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
Required
Disputes resolved outside court — limits your legal options
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
California
State whose law governs disputes — relevant if you're not based there
What drove the 44/100 rating
Risk Score Breakdown
- 01MINORDeclining unit count (-1.8% YoY on small base of 56 units indicates contraction in mature/declining system)
- 02MEDNo disclosed net income data despite $659k avg revenue — opacity suggests profitability concerns or wide variance
- 03HIGH2015 litigation involving undisclosed asset liens raises transparency and franchisor disclosure practices questions
- 04MINOR6% royalty on gross volume (not net profit) creates cashflow pressure during slow periods
- 05HIGHGoing Concern status is FALSE — potential financial instability of franchisor or ongoing operational concerns
- 06MINORModest franchise fee ($35k) suggests lower-margin, competitive market with thin differentiation
- 07MED56-unit system is very small; limited brand recognition and negotiating power with suppliers
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.