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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
63 / 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
4
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
Maryland
State whose law governs disputes — relevant if you're not based there
What drove the 63/100 rating
Risk Score Breakdown
- 01MINORNo average revenue or net income disclosure (Item 19) prevents ROI validation and suggests weak franchisee performance
- 02MINORSlow unit growth (4.8% YoY) indicates market saturation or franchisee dissatisfaction in a niche leisure market
- 03MINORHigh royalty burden ($8,700 floor + 7% revenue) creates cash flow pressure on low-margin seasonal boat/water sports business
- 04MINORWide investment range ($74K–$152K) suggests inconsistent unit economics and unclear franchisee profitability expectations
- 05HIGHGoing Concern status FALSE indicates franchisor financial instability or operational concerns
- 06MINORNiche market (boat/water sports memberships) faces seasonal revenue volatility and weather dependency
- 07HIGHNo litigation disclosed but going concern flag raises questions about franchisor transparency and financial 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.