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A29/100FDD 2025

The Dentist's Choice — Litigation & Risk

Health & Wellness - 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
29 / 100
FranchiseVerdict composite
Rating
STRONG
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
4
Government-backed loans issued
Default rate
50.0%
vs <3% typical · system-wide
5-yr default rate
100.0%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$370K
Avg loan size
$93K
Participating lenders
2

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
California
State whose law governs disputes — relevant if you're not based there

What drove the 29/100 rating

Risk Score Breakdown

  1. 01MEDNet income not disclosed in FDD — cannot validate 3-5 year ROI or profitability claims
  2. 02MINORMinimal system growth at 1.7% YoY with only 130 units suggests market saturation or franchisee dissatisfaction
  3. 03MINORAverage revenue of $195,853 is relatively modest for a dental-related franchise with $64K-$68.5K initial investment
  4. 04MINORTiered royalty structure incentivizes revenue capping (franchisees may intentionally stay under $120K threshold to avoid 3% rate)
  5. 05MEDHigh franchise fee ($50K) represents 73-78% of total investment, leaving limited working capital for 10-year term
  6. 06HIGHNo 'going concern' disclosure suggests franchisor may have financial stability concerns not addressed in FDD

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.