FranchiseVerdict
D72/100FDD 2025

Tijon Fragrance Lab — Litigation & Risk

Retail · FDD Items 3, 4 & 5

Back to overview

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
—
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
72 / 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
No
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 72/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern Warning: Franchisor marked as 'False' indicating potential financial instability or viability concerns at corporate level
  2. 02MEDExtremely Limited Unit Count: Only 3 franchises system-wide suggests minimal market validation, traction, or franchisee confidence
  3. 03MINORNo Financial Disclosure: Zero average revenue and net income data provided—inability or unwillingness to share Item 19 raises profitability questions
  4. 04MINORUnknown Growth Trajectory: No growth metrics for 3-unit system prevents assessment of expansion momentum or business model viability
  5. 05MEDVague Investment Range: $0–$0 total investment is nonsensical and indicates incomplete/unreliable FDD data or placeholder information
  6. 06MINORUnproven Unit Economics: 6% royalty rate is reasonable, but without revenue/profit benchmarks, franchisees cannot validate ROI potential

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.