FranchiseVerdict
RimTyme logo
D74/100FDD 2025

RimTyme — Litigation & Risk

Retail · FDD Items 3, 4 & 5

Back to overview

Elevated Risk

8 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
8
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
74 / 100
FranchiseVerdict composite
Rating
CAUTION
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
15
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
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
Texas
State whose law governs disputes — relevant if you're not based there

What drove the 74/100 rating

Risk Score Breakdown

  1. 01MEDSevere unit decline of 23.7% YoY (29 units remaining) indicates system contraction and loss of franchisee confidence
  2. 02HIGHGoing Concern status is FALSE, signaling material doubt about franchisor's ability to continue operations
  3. 03HIGHMultiple active litigations including consolidated arbitration on renewal/advertising terms, shareholder class actions on financial reporting, and regulatory settlements with FTC and multiple state AGs regarding lease-to-own practices
  4. 04MEDFinancial transparency crisis: average revenue and net income not disclosed, preventing ROI validation and suggesting poor franchisee performance or franchisor unwillingness to disclose
  5. 05MINORLease-to-own regulatory violations across multiple states (CA, MA, GA) indicate systemic compliance failures and reputational/legal exposure
  6. 06HIGHShareholder class actions (Hall/DePalma) alleging financial reporting fraud create doubt about franchisor's truthfulness in FDD disclosures

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.