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B65/100FDD 2026

Sea Glass Properties — Litigation & Risk

Real Estate · 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
65 / 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
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MEDOnly 5 units systemwide with unknown growth trajectory suggests minimal brand traction and limited peer support network
  2. 02MEDNo Item 19 financial performance disclosure (Avg Revenue/Net Income not disclosed) prevents ROI validation and indicates potential underperformance
  3. 03MEDHigh minimum annual fee of $10,000-$50,000 creates fixed cost burden regardless of commission income, especially risky for new franchisees in ramp-up phase
  4. 04MINORWide investment range ($34K-$273K) suggests inconsistent territory valuations and unclear startup cost transparency
  5. 05MINOR10-year term is lengthy commitment with minimal franchise system stability (5 units) to justify lock-in period
  6. 06MEDReal estate brokerage is commission-based with no salary floor, creating income volatility that minimum fees may not offset

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.