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B60/100FDD 2025

Ram Jack — Litigation & Risk

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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
60 / 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
2
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
Total loan volume
$300K
Avg loan size
$150K
Participating lenders
2

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

What drove the 60/100 rating

Risk Score Breakdown

  1. 01MINORStagnant unit growth at 1.9% YoY with only 55 franchises suggests weak system expansion and franchisee recruitment
  2. 02MEDNo disclosed average revenue or net income (Item 19 missing) prevents verification of profitability claims and ROI validation
  3. 03HIGHRecent litigation (2018-2019) involving non-compete violations and customer diversion indicates potential compliance and relationship issues
  4. 04MINORHigh capital requirement range ($30K-$650K) with no clear guidance on typical investment creates uncertainty for franchisees
  5. 05MINORRevenue model dependent on mandatory product sales creates profit opacity and potential conflicts between franchisor and franchisee interests
  6. 06MINOR5-year term is shorter than industry standard (10 years typical), suggesting higher turnover risk and franchise instability

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.