FranchiseVerdict
Sunmed | Your CBD Store logo
B66/100FDD 2024

Sunmed | Your CBD Store — Litigation & Risk

Health & Wellness - Other · FDD Items 3, 4 & 5

Back to overview

Moderate — Review

5 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
5
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
66 / 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
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
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 66/100 rating

Risk Score Breakdown

  1. 01HIGHGoing concern warning indicates potential franchisor financial distress or operational viability concerns
  2. 02MEDUnit count declined 7.7% YoY (279 units) suggesting franchisee attrition and market contraction
  3. 03HIGHFive separate litigation cases including franchisor enforcement actions and franchisee disputes over territory rights indicate systemic relationship problems
  4. 04MINORNo average revenue or net income disclosure (Item 19) prevents assessment of actual franchisee profitability
  5. 05MINORRoyalty structure tied to wholesale cost creates potential franchisor-franchisee misalignment and audit disputes
  6. 06MINORMultiple restrictive covenant enforcement cases suggest franchisor aggressively policing franchisee behavior, indicating relationship friction

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.