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
53 / 100
FranchiseVerdict composite
Rating
STRONG
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 53/100 rating
Risk Score Breakdown
- 01MEDNo average revenue or net income disclosed — inability to assess unit economics or ROI potential
- 02MINORMinimal system growth at 4.8% YoY with only 27 units — suggests market saturation or weak franchise appeal
- 03MINORWide investment range ($54K–$198K) without clear cost drivers — unclear what determines actual franchisee investment
- 04MED6% royalty on undisclosed revenue base — cannot calculate true franchisee profitability or break-even timeline
- 05MINORNo Item 19 financial performance data — franchisor is not required to disclose typical unit economics
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.