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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
54 / 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
7
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$2.1M
Avg loan size
$301K
Participating lenders
3
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
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
Florida
State whose law governs disputes — relevant if you're not based there
What drove the 54/100 rating
Risk Score Breakdown
- 01MINORHypergrowth (500% YoY unit expansion) is unsustainable and suggests potential quality control, support infrastructure, or market saturation issues
- 02HIGHGoing Concern status is FALSE — indicates franchisor financial distress or uncertainty about long-term viability
- 03MEDOnly 14 units total means extremely limited franchisee track record and insufficient data to validate the business model
- 04MINORNo Item 19 financial disclosures provided — cannot verify if average revenue/net income figures are representative or cherry-picked
- 05MINORHigh minimum royalty ($1,000/month) creates $12,000 annual fixed cost regardless of performance; break-even requires ~$15,000 monthly revenue at 8%
- 06MEDInvestment range ($258K–$448K) is capital-intensive with no disclosed ROI timeline or payback period
- 07MINORExplosive growth may indicate aggressive recruitment over franchisee success — classic franchise red flag
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.