FranchiseVerdict
SpeedPro logo
B61/100FDD 2025

SpeedPro — Litigation & Risk

Business Services - Printing & Signs · FDD Items 3, 4 & 5

Back to overview

Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
61 / 100
FranchiseVerdict composite
Rating
MODERATE
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
74
Government-backed loans issued
Default rate
22.7%
vs <3% typical · system-wide
5-yr default rate
11.1%
Defaults
10 loans
Loans charged off or defaulted
Total loan volume
$22.7M
Avg loan size
$307K
Participating lenders
31

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

What drove the 61/100 rating

Risk Score Breakdown

  1. 01MINORMinimal system growth (2.5% YoY) suggests market saturation or franchisee dissatisfaction
  2. 02HIGHRecent litigation (March 2024) for unpaid fees indicates potential franchisor-franchisee collection challenges and cash flow stress among operators
  3. 03MINORTiered royalty structure (6% then 4%) creates incentive misalignment—franchisor benefits most when sales remain under $60k/month
  4. 04MINORNo Item 19 (Financial Performance Representations) provided—cannot validate the $195,924 average net income claim against real franchisee data
  5. 05MINORHigh initial investment ($234k–$350k) relative to slow unit growth raises ROI sustainability questions

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.