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
28 / 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
262
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
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
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
State where store is located
State whose law governs disputes — relevant if you're not based there
What drove the 28/100 rating
Risk Score Breakdown
- 01MEDNet income not disclosed in Item 19 — inability to verify profitability claims against $1.31M average revenue
- 02MINORMinimal system growth of 2.1% YoY suggests market saturation or franchisee underperformance
- 03MEDHigh initial investment ($355.7K–$467.9K) combined with undisclosed net income creates ROI uncertainty
- 04MINOR5% royalty on gross sales with unknown net margins limits transparency on true franchisee economics
- 05HIGHNo going concern statement may indicate franchisor stability, but lack of growth trajectory raises sustainability questions
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.