B65/100FDD 2026
Skiptown — Litigation & Risk
Personal Services - Pet Care · FDD Items 3, 4 & 5
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
65 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Not required
You retain the right to sue in court
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
North Carolina
State whose law governs disputes — relevant if you're not based there
What drove the 65/100 rating
Risk Score Breakdown
- 01MINOROnly 3 existing units suggests extremely early-stage/unproven concept with no meaningful growth trajectory to evaluate
- 02MINORNo Item 19 (average revenue/net income disclosure) provided — impossible to assess ROI or break-even timeline against $904k-$1.6M investment
- 03MINORHigh initial investment range ($904k-$1.6M) paired with unknown unit economics creates severe financial risk visibility gap
- 04MINORMinimal franchisee base (3 units) limits ability to validate claims or obtain reliable performance data from peers
- 05MINOR6% royalty on weekly gross revenues (not net) compounds burden during startup phase when margins are tightest
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.