FranchiseVerdict
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B63/100FDD 2025

The Academy For Young Achievers — Litigation & Risk

Education - Children's Programs · 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
63 / 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
Pennsylvania
State whose law governs disputes — relevant if you're not based there

What drove the 63/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 unit in system with unknown growth trajectory — insufficient data on scalability and replicability
  2. 02HIGHGoing Concern status FALSE — suggests potential financial or operational instability at corporate level
  3. 03MEDNo Item 19 (financial performance representations) disclosed — cannot verify if $154K avg net income is achievable or typical
  4. 04MINORWide investment range ($547K–$1.3M) with high variability — suggests inconsistent unit economics or hidden cost factors
  5. 05MINOR10% net profit margin on $1.5M revenue is concerning for service-based childcare model — indicates thin margins or high overhead
  6. 06MED7% royalty on declining/uncertain revenues compounds profitability pressure — limited incentive alignment
  7. 07MINORSingle unit represents zero franchise system validation — one failed location could signal fundamental business model problems

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.