Moderate — Review
1 case disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
59 / 100
FranchiseVerdict composite
Rating
MODERATE
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
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 59/100 rating
Risk Score Breakdown
- 01MINORNo financial disclosure (Item 19) — cannot validate $81k-$223k investment ROI or profitability claims
- 02MINORSlow unit growth of only 6.8% YoY with 48 total units suggests market saturation or franchisee struggle
- 03MINORHigh fixed monthly royalty ($1,500) represents 18-22% of potential monthly revenue for marginal locations
- 04HIGHRecent trademark litigation (2021-2022) indicates IP/branding vulnerability and potential reputational damage
- 05MINORFranchise fee of $50,000 is non-refundable against a vague investment range ($81k-$223k spread suggests inconsistent buildout costs)
- 06HIGHNo 'Going Concern' status is False, which is unusual phrasing — suggests potential financial instability of franchisor
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.