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D72/100FDD 2024

Sparkle — Litigation & Risk

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
72 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
30
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

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
Arizona
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 operating unit with unknown growth trajectory suggests either brand is nascent/unproven or system is contracting
  2. 02HIGHGoing Concern status is False, indicating material doubts about franchisor's financial viability and ability to support franchisees
  3. 03MINORNo Item 19 (Average Unit Volume) disclosure combined with extremely low reported avg revenue of $19,441 suggests severe underperformance or data integrity issues
  4. 04MINORRoyalty rate unknown indicates lack of transparency and potential hidden fees that could materially impact unit economics
  5. 05MINORHigh franchise fee of $97,500 combined with total investment range up to $1,031,250 creates significant downside risk with unproven revenue model
  6. 06MEDNet income not disclosed prevents ability to assess actual profitability and ROI feasibility
  7. 07MINORWide investment range ($116,175–$1,031,250) with minimal revenue guidance indicates franchisor cannot articulate consistent unit economics

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.