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
66 / 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
10
Government-backed loans issued
Default rate
12.5%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$1.6M
Avg loan size
$165K
Participating lenders
6
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 66/100 rating
Risk Score Breakdown
- 01MEDUnit count declined 15.2% YoY (49 units down from ~58), indicating system contraction and potential franchisee struggles
- 02MEDNet income not disclosed in Item 19, preventing ROI validation and hiding profitability reality
- 03MINORHigh franchise fee ($59,500) paired with declining unit base suggests franchisees may not be achieving advertised $2.9M revenue or are exiting unprofitably
- 04HIGHGoing Concern status is False, raising questions about franchisor's financial stability and ability to support franchisees long-term
- 05MINORRoyalty structure (4-6%) on gross billings (not net) means franchisees pay on top-line regardless of profitability—concerning given no Item 19 disclosure
- 06MED10-year term is lengthy with limited data on renewal/exit strategies; no disclosure of how many of the 49 units are original vs. recently opened
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.