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B61/100FDD 2025

ScoliCare — Litigation & Risk

Health & Wellness - Other · FDD Items 3, 4 & 5

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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
61 / 100
FranchiseVerdict composite
Rating
MODERATE
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
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
New York
State whose law governs disputes — relevant if you're not based there

What drove the 61/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern issue disclosed — indicates potential financial distress at franchisor level
  2. 02MEDNet income not disclosed in Item 19 — cannot assess actual profitability despite $890K average revenue claim
  3. 03MINOROnly 4 operating units with 33.3% YoY growth still represents minimal scale and unproven business model viability
  4. 04MEDHigh investment ceiling ($541,500) relative to disclosed average revenue ($889,959) creates thin margin for error
  5. 05MINOR5% royalty on gross sales (or minimum fee structure unstated) — unclear if franchisees can actually achieve profitability at claimed revenue levels
  6. 06HIGHNo litigation disclosed but Going Concern flag suggests potential undisclosed franchisor financial problems

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.