B60/100FDD 2024
Oliver's Nannies — Litigation & Risk
Education - Children's Programs · 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
60 / 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
2
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
$175K
Avg loan size
$88K
Participating lenders
1
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
New Jersey
State whose law governs disputes — relevant if you're not based there
What drove the 60/100 rating
Risk Score Breakdown
- 01MINOROnly 2 franchise units in system with unknown growth trajectory suggests minimal market validation and potential franchise model weakness
- 02MINORNo average net income disclosure (Item 19) prevents assessment of actual profitability and ROI on $61,800-$102,500 investment
- 03MINORMinimum royalty of $1,250/month ($15,000 annually) means franchisee needs $300,000+ in annual revenue just to break even on royalties alone
- 04HIGHGoing Concern status is False, indicating potential financial instability or uncertainty about franchisor's viability
- 05MINORExtremely small unit count (2 units) creates high risk of franchisor collapse if either franchisee underperforms or leaves
- 06HIGHNo litigation disclosure combined with minimal scale makes it difficult to assess reputational or operational risk history
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.