FranchiseVerdict
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D70/100FDD 2025

SKIN EXPERTS by Brentwood Spa — Litigation & Risk

Health & Wellness - Other · 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
70 / 100
FranchiseVerdict composite
Rating
CAUTION
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
5 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
Delaware
State whose law governs disputes — relevant if you're not based there

What drove the 70/100 rating

Risk Score Breakdown

  1. 01MINOROnly 3 units in system with unknown growth trajectory suggests minimal scale and unclear market validation
  2. 02MINORAverage revenue of $16,726 is extremely low for a $485,600-$865,100 investment, implying payback period exceeding 29-51 years
  3. 03MEDNet income not disclosed in Item 19 prevents assessment of actual profitability and ROI
  4. 04MINORFixed $1,500/month royalty on $16,726 average revenue equals 10.7% royalty rate, which is high relative to earnings
  5. 05MINORSignificant gap between low-end and high-end investment ($379,500 spread) suggests highly variable unit economics
  6. 06MEDNo disclosed franchisee growth or system expansion history with only 3 units indicates weak franchise model traction

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.