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B64/100FDD 2025

Putt-Putt — Litigation & Risk

Other · FDD Items 3, 4 & 5

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
64 / 100
FranchiseVerdict composite
Rating
MODERATE
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
30
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
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
North Carolina
State whose law governs disputes — relevant if you're not based there

What drove the 64/100 rating

Risk Score Breakdown

  1. 01MEDSystem contracting sharply: 13.8% unit decline YoY (25 units remaining) signals major deterioration
  2. 02HIGHActive litigation in 2024 over royalty collection and standards enforcement indicates franchisor-franchisee conflict and compliance issues
  3. 03HIGHGoing concern status FALSE — franchisor financial viability is questionable
  4. 04MINORNo Item 19 financial performance disclosure — inability or unwillingness to provide average revenue/net income is major red flag
  5. 05MINORWide investment range ($420K–$5.38M) suggests inconsistent unit economics or underspecified requirements
  6. 06MED5% royalty on undisclosed average revenue makes ROI impossible to calculate
  7. 07MINORZero franchise fee suggests potential financial distress at corporate level

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.