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D72/100FDD 2025

Nowlogy — Litigation & Risk

Health & Wellness - Other · 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
72 / 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
Minnesota
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MINOROnly 4 units in system with unknown/likely stagnant growth suggests failed franchise model
  2. 02MINORNo average revenue or net income disclosure (Item 19) prevents realistic ROI assessment
  3. 03HIGHGoing concern status indicates franchisor financial instability and viability risk
  4. 04MINORHigh initial investment ($71.2K-$262.1K) combined with $4K minimum monthly royalty creates breakeven pressure
  5. 05MINOR7.5% royalty on 'collected revenue' is vague accounting; unclear what qualifies and payment risk exposure
  6. 06MINOR10-year term is lengthy commitment with unproven business model and only 4 references

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.