Elevated Risk
12 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
12
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
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.
Total 7(a) loans
29
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$8.9M
Avg loan size
$309K
Participating lenders
7
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
Ohio
State whose law governs disputes — relevant if you're not based there
What drove the 60/100 rating
Risk Score Breakdown
- 01MINORMultiple class action lawsuits involving employee misclassification and wage violations suggest systemic operational or contractual issues affecting franchisee profitability and compliance risk
- 02MEDSEC consent order with Maryland Securities Commissioner indicates regulatory violations in sub-franchise sales, raising concerns about corporate governance and franchise disclosure practices
- 03MEDNet income not disclosed in FDD Item 19 prevents validation of the $1.85M average revenue claim and makes ROI analysis impossible; combined with 3.8% YoY unit growth (minimal), suggests franchisees may not be achieving profitable returns
- 04MINORSlow unit growth (55 units, only 3.8% YoY expansion) in a 20-year-old system indicates market saturation, weak recruitment, or franchisee dissatisfaction
- 05MEDHigh franchise fee ($125,000) plus startup costs up to $377,000 creates significant capital requirement with unproven payback period due to missing profitability data
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.