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D68/100FDD 2025

One River School — Litigation & Risk

Business Services - Printing & Signs · 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
68 / 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
New Jersey
State whose law governs disputes — relevant if you're not based there

What drove the 68/100 rating

Risk Score Breakdown

  1. 01MINORSystem shrinkage of 25% YoY (15 units down from 20) indicates franchisee failure or dissatisfaction
  2. 02MINORProfitability crisis: avg net income of $3,966 on $614,919 revenue = 0.64% net margin (industry standard 10-15%)
  3. 03HIGHNo going concern status suggests franchisor financial instability or viability questions
  4. 04MINORHigh royalty rate (9%) combined with razor-thin margins creates unsustainable unit economics
  5. 05MINORWide investment range ($179.5K-$568K) with no clarity on what drives variance or guarantees
  6. 06MINORNo Item 19 financial performance representation limits ability to validate claims

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.