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
63 / 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
Utah
State whose law governs disputes — relevant if you're not based there
What drove the 63/100 rating
Risk Score Breakdown
- 01MINORUnit count declining 4.8% YoY indicates system contraction and potential market saturation or franchisee dissatisfaction
- 02MEDAverage revenue and net income not disclosed in FDD Item 19 — impossible to validate ROI or profitability claims
- 03MINORRoyalty structure is unusually complex (10% OR 50% of gross OR $77-$320 minimum) creating unpredictable cost burden and potential margin compression
- 04MINORWide investment range ($4,650-$31,650) suggests unclear startup costs and inconsistent franchisee experience
- 05MINOR5-year term is below industry standard (typically 10 years), indicating higher renewal risk and shorter payback window
- 06MEDNo disclosed financial performance data makes it impossible to assess whether the franchise model is genuinely profitable
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.