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
60 / 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 60/100 rating
Risk Score Breakdown
- 01MINOROnly 1 operating unit makes performance claims unreliable and impossible to validate system-wide trends
- 02MINORNo Item 19 financial performance representation provided—claimed $310,877 revenue is unverified single-unit data
- 03HIGHGoing Concern status is FALSE, indicating potential franchisor financial instability or viability questions
- 04MINORHigh franchise fee ($42,000) combined with wide investment range ($55.5K-$136.1K) suggests unclear startup costs and poor financial transparency
- 05MINOR7% royalty on gross sales (whichever is greater) creates unprofitable months for low-revenue periods with no apparent minimum threshold relief
- 06MINORUnknown growth trajectory with only 1 unit prevents assessment of market demand, replicability, or system viability
- 07MINORCandle rental is a niche, untested market with unclear seasonal demand volatility and customer acquisition costs
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.