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A45/100FDD 2025

Sandler Training — Litigation & Risk

Education - Tutoring & Test Prep · FDD Items 3, 4 & 5

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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
45 / 100
FranchiseVerdict composite
Rating
STRONG
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
17
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$4.1M
Avg loan size
$239K
Participating lenders
13

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

What drove the 45/100 rating

Risk Score Breakdown

  1. 01MINORStagnant unit growth (0.7% YoY) indicates market saturation or system-wide performance issues
  2. 02MINORNo Item 19 (Average Net Income) disclosure raises transparency concerns about actual franchisee profitability
  3. 03MINORUnprotected territory creates direct competition risk from other Sandler franchisees in your service area
  4. 04MINOR8% royalty on gross revenues (not net) is substantial burden if margins are thin, especially in service-based model
  5. 05HIGH2009-2017 litigation over revenue sharing and training agreements suggests fundamental disputes about franchise terms
  6. 06MEDHigh initial investment ($77.5K-$102.2K) with undisclosed average net income creates ROI visibility gap
  7. 07MINOR5-year term is relatively short; renewal risk and renegotiation leverage unclear

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.