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
59 / 100
FranchiseVerdict composite
Rating
MODERATE
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
Tennessee
State whose law governs disputes — relevant if you're not based there
What drove the 59/100 rating
Risk Score Breakdown
- 01MEDAverage net income of $696,369 is NOT disclosed in FDD Item 19 — this figure appears sourced elsewhere and cannot be verified; franchisor transparency is compromised
- 02MINOROnly 49 units with 2.1% YoY growth indicates stagnant/declining system momentum — minimal expansion suggests market saturation or franchisee dissatisfaction
- 03MINORGross revenue figures withheld entirely — impossible to validate the $696K net income claim or calculate true ROI; red flag for franchisor accountability
- 04MEDHigh initial investment ($127K-$208K) paired with slow growth and undisclosed revenue metrics creates unfavorable risk-reward profile
- 05HIGH'Going Concern' status listed as False but lacks clarity — needs verification whether franchisor has disclosed liquidity/solvency issues in Item 23
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.