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
69 / 100
FranchiseVerdict composite
Rating
MODERATE
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
What drove the 69/100 rating
Risk Score Breakdown
- 01MINOROnly 1 unit in system with unknown growth trajectory indicates early-stage or stalled franchise development
- 02HIGHGoing Concern = False suggests financial instability or corporate viability concerns at franchisor level
- 03MEDNo Item 19 (financial performance representations) disclosed — cannot validate if $9.28M avg revenue is achievable or representative
- 04MINOR$3,000/month minimum royalty (Year 2+) may be unsustainable if franchisee underperforms, creating cash flow pressure
- 05MINORHigh investment range ($365,900–$557,900) paired with single-unit system indicates unproven unit economics at scale
- 06MINOR15-year term is lengthy commitment given franchisor's apparent financial instability and single operational reference
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.