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B59/100FDD 2025

PackageHub Business Centers — Litigation & Risk

Business Services - Shipping & Postal · 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
59 / 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
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

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
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
Texas
State whose law governs disputes — relevant if you're not based there

What drove the 59/100 rating

Risk Score Breakdown

  1. 01MEDNo average revenue or net income disclosed in FDD Item 19 — impossible to validate ROI on $6K-$13K investment
  2. 02MINORUnprotected territory creates direct competition risk; 1,173 units with 26.7% YoY growth suggests market saturation potential
  3. 03MINORUltra-low monthly royalty ($100) may indicate low franchisor support, quality control, or revenue-sharing model sustainability
  4. 04MINOR3-year term is short; high turnover risk suggests franchisees may not find business model sustainable long-term
  5. 05MINORZero franchise fee is unusual and may signal weak franchisor vetting, onboarding, or commitment to franchisee success
  6. 06MEDRapid unit growth (26.7% YoY) without disclosed profitability metrics suggests quantity-over-quality expansion

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.