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A51/100FDD 2026
Play Street Museum — Litigation & Risk
Education - Children's Programs · FDD Items 3, 4 & 5
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
19
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$8.5M
Avg loan size
$448K
Participating lenders
10
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Not required
You retain the right to sue in court
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
Texas
State whose law governs disputes — relevant if you're not based there
What drove the 51/100 rating
Risk Score Breakdown
- 01MEDNo Item 19 (Average Unit Volume) disclosed despite $406k average revenue claim — inability or unwillingness to substantiate earnings
- 02HIGHGoing Concern status is FALSE — suggests franchisor financial instability or structural issues
- 03MEDNet income not disclosed — impossible to assess actual profitability; $406k revenue minus operating costs could yield minimal returns on $482k-$760k investment
- 04MINOR27.3% YoY unit growth appears strong but from only 30 total units — small base makes growth statistic less meaningful and system more vulnerable
- 05MEDHigh investment-to-revenue ratio ($482k-$760k initial cost vs. $406k average annual revenue) creates 1.2-1.9 year payback dependency on undisclosed net margins
- 06MED6% royalty on top of undisclosed operating costs may consume significant portion of $406k revenue
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.