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B63/100FDD 2025

Pressed Roots — Litigation & Risk

Personal Services - Beauty & Salon · 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
63 / 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
3 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 63/100 rating

Risk Score Breakdown

  1. 01MEDOnly 4 franchise units with unknown growth trajectory indicates extremely limited system maturity and unproven scalability
  2. 02MEDNet income not disclosed in Item 19 makes ROI impossible to validate; average $1.19M revenue means little without profitability data
  3. 03HIGHGoing Concern = False suggests potential franchisor financial instability or undisclosed operational challenges
  4. 04MINORHigh investment range ($475K-$800K) paired with only 4 existing units creates high risk of inadequate support infrastructure
  5. 05MINORRoyalty escalation from 5% to 7% in Year 2 reduces franchisee profitability without demonstrated system success
  6. 06HIGHNo disclosed litigation but micro-system size limits statistical significance; small sample makes disputes more impactful

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.