B67/100FDD 2025
Ntv 360 — Litigation & Risk
Business Services - Other · FDD Items 3, 4 & 5
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
67 / 100
FranchiseVerdict composite
Rating
MODERATE
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
3
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$235K
Avg loan size
$78K
Participating lenders
2
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
1 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
No
Franchisor can match any purchase offer when you try to sell
Governing law
Colorado
State whose law governs disputes — relevant if you're not based there
What drove the 67/100 rating
Risk Score Breakdown
- 01MINOROnly 2 existing units with unknown growth trajectory indicates extremely small, unproven system with minimal track record
- 02MEDNo average net income disclosed despite Item 19 requirement — inability or unwillingness to provide profitability data is major red flag
- 03HIGHGoing Concern status is FALSE, suggesting potential financial distress or operational instability at franchisor level
- 04MEDHigh franchise fee ($35,000) plus variable royalty structure ($500/month + $75 per Component Player) creates unpredictable unit economics with limited franchisee reference pool
- 05MINORInvestment range of $48,150–$120,405 appears wide without corresponding Item 19 data to justify or explain variance
- 06MINOROnly 2 franchisees provide insufficient sample size to validate business model, ROI claims, or system viability
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.