D72/100FDD 2025
Restpoint Inn — Litigation & Risk
Lodging - Hotels & Motels · FDD Items 3, 4 & 5
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
72 / 100
FranchiseVerdict composite
Rating
CAUTION
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
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
South Carolina
State whose law governs disputes — relevant if you're not based there
What drove the 72/100 rating
Risk Score Breakdown
- 01MINORZero operating franchise units with unknown growth trajectory indicates system is either pre-revenue or actively contracting
- 02MINORNo average revenue or net income disclosure (Item 19) prevents financial performance validation and return projections
- 03HIGHGoing Concern status is FALSE, suggesting potential financial instability or operational challenges at franchisor level
- 04MINORWide investment range ($211K-$1.99M) with no clear unit economics or justification for 840% variance
- 05MINOREscalating royalty structure (2%-5% over 4 years) compounds risk when actual franchisee profitability is unknown
- 06MED15-year term lock-in with no disclosed franchisee exits, failures, or resale activity data
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.