FranchiseVerdict
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D75/100FDD 2026

The Flower Garage — Litigation & Risk

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
75 / 100
FranchiseVerdict composite
Rating
CAUTION
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
Arizona
State whose law governs disputes — relevant if you're not based there

What drove the 75/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status indicates franchisor financial distress or viability questions
  2. 02MINOROnly 3 units system-wide suggests minimal scale, network support, and supplier leverage
  3. 03MINORNo average revenue or net income disclosure (Item 19) prevents ROI validation and profitability assessment
  4. 04MINORFlat $500/month royalty structure may be unsustainable if franchisees underperform or creates misaligned incentives
  5. 05MINORHigh franchise fee ($25,000) relative to investment range ($36,125–$74,200) represents 26-69% of startup cost
  6. 06MEDUnknown unit growth trajectory indicates no disclosed expansion momentum or franchisee success stories
  7. 07MINOR5-year term is relatively short; renewal uncertainty compounds investment risk in early-stage systems

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.