FranchiseVerdict
PayMore logo
A51/100FDD 2025

PayMore — Litigation & Risk

Retail · FDD Items 3, 4 & 5

Back to overview

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
51 / 100
FranchiseVerdict composite
Rating
STRONG
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
15
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
Total loan volume
$3.9M
Avg loan size
$257K
Participating lenders
5

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

What drove the 51/100 rating

Risk Score Breakdown

  1. 01MINORUnit count collapsed 60% YoY (58 units remaining) — indicates severe system deterioration
  2. 02MINORNo net income disclosure — unable to assess actual franchisee profitability despite $1.2M average revenue
  3. 03MINORNo territory protection — franchisees face direct competition from other PayMore locations
  4. 04MINORHigh ongoing royalty floor of $1,000/month (~$12,000 annually) with no guaranteed minimum revenue
  5. 05MEDSubstantial investment range ($131,750-$256,500) with no disclosed Item 19 financial performance data
  6. 06HIGHGoing Concern status is False — potential financial instability at franchisor level
  7. 07MINOR15-year term locks franchisees into declining system with minimal flexibility

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.