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B55/100FDD 2025

Pure Glow — Litigation & Risk

Other · 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
55 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

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
Massachusetts
State whose law governs disputes — relevant if you're not based there

What drove the 55/100 rating

Risk Score Breakdown

  1. 01MINOROnly 5 units systemwide with unknown growth trajectory suggests nascent or stalled expansion
  2. 02MINORHigh initial investment ($563,925–$966,650) against modest average net income ($103,361.50) yields 1–1.8 year payback period with significant capital intensity
  3. 03MINOR25.5% net margin on $404,578 average revenue is healthy but based on extremely small sample size with high variance risk
  4. 04MEDNo Item 19 Financial Performance Representations disclosed; cannot independently verify revenue/income claims
  5. 05MINOR7% royalty on gross sales (not net) creates ongoing pressure and lacks flexibility in low-revenue periods

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.