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F81/100FDD 2025

Petland — Litigation & Risk

Personal Services - Pet Care · FDD Items 3, 4 & 5

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Elevated Risk

6 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
6
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
81 / 100
FranchiseVerdict composite
Rating
AVOID
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
166
Government-backed loans issued
Default rate
44.2%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
72 loans
Loans charged off or defaulted
Total loan volume
$72.2M
Avg loan size
$435K
Participating lenders
50

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
3 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
Ohio
State whose law governs disputes — relevant if you're not based there

What drove the 81/100 rating

Risk Score Breakdown

  1. 01MEDNo average net income disclosed in FDD Item 19 — cannot validate actual profitability against $315K-$1.08M investment
  2. 02HIGHChronic litigation involving fraud, consumer protection violations, and breach of contract claims — reputational and operational risk
  3. 03MINORSlow unit growth at 4.5% YoY with only 91 units suggests market saturation, franchisee struggles, or brand deterioration
  4. 04MEDHigh initial investment ($315K minimum) coupled with undisclosed net income creates poor ROI transparency
  5. 05MINORTiered royalty structure (4.5% then 2.25%) incentivizes rapid expansion over franchisee profitability
  6. 06MINORPet retail sector faces headwinds from online retailers (Chewy, Amazon) and big-box competitors (PetSmart, Petco)
  7. 07HIGHLitigation settlements indicate ongoing customer dissatisfaction and potential compliance issues with animal welfare standards

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.