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D75/100FDD 2025

The Pop Star Party — Litigation & Risk

Education - Children's Programs · 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
New York
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 is FALSE — indicates franchisor financial distress or operational instability
  2. 02MINOROnly 1 unit in system with unknown growth trajectory — no track record of replicable success or scalability
  3. 03MINORNo average revenue or net income disclosure — inability to assess realistic ROI on $363k-$604k investment
  4. 04MED7% royalty on undisclosed revenue base — franchisee cannot model profitability or break-even scenarios
  5. 05MINORHigh initial investment ($363k-$604k) combined with $45k franchise fee with zero performance data to justify costs
  6. 06MINOR10-year term locks franchisee into relationship with single-unit, non-growing system
  7. 07HIGHNo litigation disclosure provided — unable to verify absence of disputes or franchisor credibility issues

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.