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B65/100FDD 2025

The Only Facial — 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
65 / 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
No
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Missouri
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 financial disclosure (average revenue and net income not provided) — impossible to validate ROI claims or unit economics
  2. 02MINOROnly 5 units system-wide indicates extremely early-stage franchise with minimal operational track record and high failure risk
  3. 03MINOR100% YoY growth from 5 to 10 units is mathematically insignificant and may mask underlying weakness in the core business model
  4. 04MINORHigh initial investment ($298k–$460k) relative to system maturity creates significant financial risk with unproven unit profitability
  5. 05HIGHNo disclosed litigation does not confirm safety; early-stage systems often lack franchisee disputes simply due to small size
  6. 06HIGHMissing going concern statement raises questions about franchisor financial stability and ability to support franchisees

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.