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B65/100FDD 2025

Send Me a Pro — Litigation & Risk

Other · 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
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. 01MINORExtremely high royalty rate (40%) combined with $0 franchise fee suggests aggressive revenue extraction model with minimal upfront commitment from franchisor
  2. 02MEDOnly 8 units system-wide with no disclosed growth trajectory indicates either nascent/stalled expansion or significant franchisee attrition
  3. 03MINORNo Item 19 (Average Revenue/Net Income) disclosure prevents ROI validation and suggests franchisor may lack performance data to support claims
  4. 04MINOR2021 California regulatory violation (expired CPA credentials in registration filings) raises compliance and disclosure integrity concerns, despite modest $15K fine
  5. 05MINORExtreme investment range spread ($89K–$342K, 3.8x difference) indicates high variability in territory economics and unclear cost structure
  6. 06MED10-year term with protected territory creates long-term lock-in risk if unit economics prove unfavorable, with limited franchisor financial transparency

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.