FranchiseVerdict
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B60/100FDD 2025

SteamPro — 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
60 / 100
FranchiseVerdict composite
Rating
MODERATE
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
Not waived
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 60/100 rating

Risk Score Breakdown

  1. 01MEDOnly 1 disclosed unit with unknown growth trajectory suggests an extremely nascent or non-expanding franchise system
  2. 02HIGHGoing Concern designation indicates franchisor may lack financial stability or be at risk of business failure
  3. 03MEDNo Item 19 (Financial Performance Representations) disclosed limits ability to validate the $1.52M average revenue claim
  4. 04MINORWide investment range ($54.5K-$102K) with vague cost structure raises questions about transparency and actual unit economics
  5. 05MINOR7% royalty on a $1.5M revenue base equals ~$106K annually; profitability sustainability unclear against franchisor viability

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.