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B65/100FDD 2026

Pip — Litigation & Risk

Business Services - Printing & Signs · FDD Items 3, 4 & 5

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
65 / 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
Governing law
California
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MEDUnit count declined 3.8% YoY (50 units total) indicating system contraction and weak franchisee recruitment/retention
  2. 02MINORNo Item 19 financial performance disclosure means prospective franchisees cannot verify actual profitability claims or ROI potential
  3. 03HIGHAffiliate litigation (TeamLogic/California) for improper franchise sales practices suggests possible compliance weaknesses across parent company's franchise operations
  4. 04MINORRoyalty structure ranges from 0.25% to 6.5% with no clarity on triggers or escalation, creating uncertainty about actual cost burden
  5. 05MINORHigh initial investment ($246,690-$274,190) with 10-year commitment combined with shrinking franchise base increases franchisee financial risk

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.