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D75/100FDD 2025

Toodley Town — 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
No
Franchisor can match any purchase offer when you try to sell
Governing law
Nevada
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 indicates potential financial distress or viability questions at franchisor level
  2. 02MINOROnly 1 operating unit with unknown growth trajectory suggests system is pre-revenue or collapsing
  3. 03MINORNo Item 19 financial performance representation limits ability to validate the $484,058 average revenue claim
  4. 04MINOR8% royalty on $484k revenue = $38,724/year in ongoing costs plus $282k-$442k upfront capital requirement creates high break-even threshold
  5. 05MEDExtremely limited franchisee base (1 unit) prevents meaningful performance validation or peer support network
  6. 06MEDUnknown growth indicates franchisor has not disclosed expansion plans or new unit performance trends

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.