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D72/100FDD 2025

Renegade Insurance — Litigation & Risk

Business Services - Tax & Financial · FDD Items 3, 4 & 5

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Moderate — Review

4 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
4
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
72 / 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
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
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 active franchise unit with unknown growth trajectory suggests a non-viable or collapsing system
  2. 02MINORRoyalty structure of 20-60% of gross revenue is extremely high and will severely limit profitability regardless of sales volume
  3. 03HIGHFour litigations involving breach of contract, fraud, and misrepresentation against affiliate entity raises serious concerns about corporate integrity and business practices
  4. 04MEDNo disclosed average revenue or net income data prevents meaningful ROI analysis and suggests franchisor may be hiding poor unit economics
  5. 05MINORUnprotected territory exposes franchisees to direct competition from other franchisees and the franchisor itself
  6. 06HIGHGoing Concern status is False, indicating potential financial instability of the parent franchisor
  7. 07MINORHigh franchise fee ($25,000) combined with wide investment range ($28,350-$101,200) suggests unclear or variable startup costs

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.