FranchiseVerdict
D73/100FDD 2022

R3vive — Litigation & Risk

Health & Wellness - 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
73 / 100
FranchiseVerdict composite
Rating
CAUTION
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
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
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 73/100 rating

Risk Score Breakdown

  1. 01MEDNo average revenue or net income disclosed (Item 19) — impossible to validate ROI on $262k-$669k investment
  2. 02HIGHGoing Concern status is FALSE — suggests franchisor may have financial instability or operational challenges
  3. 03MEDOnly 10 units system-wide — extremely small franchise with limited track record and data
  4. 04MINOR50% YoY unit growth from 10 is mathematically volatile (5 additional units) — growth trajectory is unclear and unit base too small to be statistically meaningful
  5. 05MINORHigh initial investment ($75k franchise fee + $262k-$669k total) relative to system size creates liquidity risk if franchisor fails
  6. 06HIGHNo litigation disclosed is positive, but small unit count limits exposure — doesn't validate business model viability

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.