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D70/100FDD 2025

Small Town Play Café — Litigation & Risk

Education - Children's Programs · 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
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
New Jersey
State whose law governs disputes — relevant if you're not based there

What drove the 70/100 rating

Risk Score Breakdown

  1. 01MEDOnly 1 operating unit with unknown growth trajectory indicates unproven scalability and extremely limited performance data
  2. 02HIGHGoing Concern status is FALSE, suggesting the parent company or existing operations may face viability issues
  3. 03MINORHigh investment range ($500K–$792K) with only one comparable unit creates severe benchmarking uncertainty
  4. 04HIGHNo litigation disclosed but single-unit system provides minimal legal/operational precedent to evaluate
  5. 05MINORItem 19 (financial performance) appears absent or unreliable given contradictory metrics (avg revenue $1.04M vs. single unit unknown)

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.