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D74/100FDD 2023

Ninja Trix — Litigation & Risk

Education - Children's Programs · 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
74 / 100
FranchiseVerdict composite
Rating
CAUTION
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
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 74/100 rating

Risk Score Breakdown

  1. 01MEDUnit count declined 26.3% year-over-year (43 units), indicating system contraction and franchisee attrition
  2. 02MINORNo average revenue or net income disclosure (Item 19 absent), preventing ROI validation and profitability assessment
  3. 03HIGHGoing concern status is FALSE, suggesting potential financial instability at franchisor level
  4. 04MEDHigh initial investment range ($224.6K–$381.5K) with 7.5% royalty burden and no disclosed average unit economics
  5. 05MINORCombination of shrinking franchise base + financial opacity creates high closure risk for new franchisees

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.