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A54/100FDD 2025

Sperry Commercial Global Affiliates — Litigation & Risk

Real Estate · 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
54 / 100
FranchiseVerdict composite
Rating
STRONG
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
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

What drove the 54/100 rating

Risk Score Breakdown

  1. 01MINORSystem declining: 57 units with -1.8% YoY contraction indicates shrinking franchise base
  2. 02MEDNo financial disclosure: Avg Revenue and Avg Net Income not disclosed—unable to validate ROI or profitability claims
  3. 03MINOROpaque unit economics: Per-agent fees ($375/month) plus 2% GCI create variable cost structure that's difficult to model
  4. 04MINORWide investment range ($14.8K–$181.5K) suggests inconsistent startup costs and unclear path to minimum viable operation
  5. 05MEDModest franchise fee ($10K) may indicate limited franchisor support or low barrier to exit
  6. 06MINORNo Item 19 earnings claims—cannot verify typical agent or office revenue benchmarks

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.