FranchiseVerdict
SATELLITE TEAMS logo
B60/100FDD 2026

Satellite Teams — Litigation & Risk

Business Services - Staffing · FDD Items 3, 4 & 5

Back to overview

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
60 / 100
FranchiseVerdict composite
Rating
MODERATE
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
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
Puerto Rico
State whose law governs disputes — relevant if you're not based there

What drove the 60/100 rating

Risk Score Breakdown

  1. 01MEDOnly 1 known franchisee unit with unknown growth trajectory signals potential system stagnation or undisclosed closures
  2. 02MINORNo protected territory despite $92.5k-$115k investment creates direct competition risk and uncontrolled market saturation
  3. 03MINORComplex tiered royalty structure (10% across three revenue streams with $1.5k floor) may obscure true take-home profitability
  4. 04MINORHigh franchise fee ($69,999) represents 75% of minimum total investment with unproven unit economics at scale
  5. 05MINORItem 19 financial data shows only single unit—unable to validate if $3.4M revenue and $563k net income are replicable or outliers
  6. 06MED5-year term is shorter than industry standard, creating renewal uncertainty and limited window to recoup $115k investment

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.