FranchiseVerdict
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A53/100FDD 2025

Postal Connections and iSOLD It — Litigation & Risk

Business Services - Shipping & Postal · FDD Items 3, 4 & 5

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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

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
51
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
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 53/100 rating

Risk Score Breakdown

  1. 01MINORUnit count declining 5.3% YoY (36 units) indicates shrinking franchise system with potential market saturation or franchisee exit concerns
  2. 02MEDNet income not disclosed in FDD Item 19 makes ROI projections impossible; average revenue of $354k does not guarantee profitability at this investment level
  3. 03MINORWide investment range ($56.5k–$239k) suggests highly variable unit economics and unclear startup cost transparency
  4. 04HIGHNo going concern statement is standard, but combined with unit decline signals potential franchisor financial stress
  5. 05MED4% royalty on gross volume (not net) means franchisees pay regardless of profitability; with undisclosed net income, true burden is unknown

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.