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B65/100FDD 2025

Seriously Addictive Mathematics — Litigation & Risk

Education - Tutoring & Test Prep · 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
California
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01HIGHPredecessor company litigation involving unregistered franchises in California and formal Notices of Violation from DFPI — indicates regulatory compliance issues and potential liability exposure
  2. 02MEDFinancial performance metrics completely undisclosed (no Item 19 average unit volumes or net income) — impossible to validate ROI on $58,500–$99,000 investment or $30/student/month royalty model
  3. 03MINORExtremely slow unit growth: only 9 units with 14.3% YoY growth suggests weak franchisee recruitment, retention, or both; minimal system scale limits support infrastructure
  4. 04MEDRoyalty structure ($30/student/month) creates high dependency on student enrollment fluctuations; no disclosed minimum thresholds or guaranteed revenue benchmarks
  5. 05MINOR3-year term is short for education franchise investment recovery; renewal terms and conditions not specified

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.