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
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
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
New Jersey
State whose law governs disputes — relevant if you're not based there
What drove the 65/100 rating
Risk Score Breakdown
- 01MINORNo Item 19 financial disclosure (average revenue and net income not provided) prevents ROI validation on $107-113K investment
- 02MINORExtremely small system (64 units) with unknown growth trajectory raises sustainability and support infrastructure concerns
- 03MINORHigh royalty structure (10% minimum + potential additional minimums per footnote 1) creates cash flow risk for low-revenue locations
- 04HIGHNo disclosed litigation does not confirm absence of disputes; small system size makes this less meaningful
- 05MINOR5-year term with $35,000 upfront fee limits exit flexibility if unit underperforms
- 06MINORBusiness model appears capital-intensive (locker systems) with unclear break-even timeline and recurring cost structure
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.