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D72/100FDD 2025

Speedy Lube — Litigation & Risk

Automotive - Repair & Service · 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

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 72/100 rating

Risk Score Breakdown

  1. 01MINOROnly 5 operating units indicates extremely small, stagnant franchise system with minimal proven scalability
  2. 02MEDNo Item 19 financial disclosure (Avg Revenue/Net Income not disclosed) prevents validation of ROI claims and profitability
  3. 03HIGHGoing Concern status is FALSE, suggesting potential financial instability or operational viability questions at corporate level
  4. 04MINORWide investment range ($150K-$395K spread of 163%) indicates inconsistent startup costs and unclear capital requirements
  5. 05MINORUnknown unit growth trajectory with only 5 locations raises questions about system expansion capability and franchisee success rates
  6. 06MED4% royalty + undisclosed overhead costs cannot be evaluated without transparent P&L data from existing franchisees

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.