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BAbove average53/100FDD 2026

Travel Leaders: Litigation & Risk

Recreation & Entertainment · 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)
None
Franchisor or officer bankruptcy
Verdict score
53 / 100
FranchiseVerdict composite · higher is better
Rating
B
A / B / C / D / F verdict grade

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Charge-off rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
10
Government-backed loans issued
Charge-off rate
20.0%
vs 16% franchise average
5-yr charge-off rate
N/A
Defaults
2 loans
Loans charged off or defaulted
Total loan volume
$3.1M
Avg loan size
$312K
Participating lenders
6

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
Not waived
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
Minnesota
State whose law governs disputes. Relevant if you're not based there

Extracted from FDD Item 3

Litigation Detail

No litigation required to be disclosed

What drove the 53/100 verdict

Risk Score Breakdown

  1. 01MEDFinancials are parent-level; brand-specific equity not disclosed
  2. 02MINORNo Item 19 disclosure
  3. 03HIGHOtherwise clean: 0 litigation, no bankruptcy, 188 units +2.7%, audited

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.