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A53/100FDD 2024

The Flying Locksmiths — Litigation & Risk

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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
53 / 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
26
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
$3.4M
Avg loan size
$131K
Participating lenders
8

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
1.5 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
Massachusetts
State whose law governs disputes — relevant if you're not based there

What drove the 53/100 rating

Risk Score Breakdown

  1. 01HIGHActive litigation alleging fraudulent misrepresentation and material non-disclosure of licensing/regulatory requirements
  2. 02MINORSystem declining at -1.1% YoY with only 93 units — indicates stagnation or contraction
  3. 03MEDItem 19 (Average Unit Volume) not disclosed — inability to validate $713,997 avg revenue claim or profitability
  4. 04MINORHigh initial investment ($150K-$400K) with 8% royalty against declining unit count raises sustainability concerns
  5. 05HIGHGoing Concern status is False, but litigation and unit decline suggest underlying franchise system stress
  6. 06MINORTerritory protection claims unverified without disclosure of how encroachment disputes are handled (see Black 13 case)

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.