D72/100FDD 2025
Status Solutions Network — Litigation & Risk
Business Services - Other · FDD Items 3, 4 & 5
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
Not required
You retain the right to sue in court
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
Ohio
State whose law governs disputes — relevant if you're not based there
What drove the 72/100 rating
Risk Score Breakdown
- 01MINORSystem collapsed 50% YoY (2 units remaining) — suggests severe franchisee distress or brand failure
- 02MINORNo average revenue or net income disclosure — inability/unwillingness to show Unit Economics is major red flag
- 03MINORHigh royalty floor ($500/month minimum = $6,000/year) with 15% gross royalty creates break-even pressure on low-revenue units
- 04MINORFranchise fee of $39,500 represents 85% of total investment floor ($46,500) — minimal working capital for franchisees
- 05MINORNo Item 19 financial performance representations — franchisor provides zero earnings claims to validate ROI
- 06MINOROnly 2 franchises remaining in system — insufficient scale for support infrastructure, marketing, or supplier negotiations
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.