FranchiseVerdict
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B65/100FDD 2026

True Install — Litigation & Risk

Business Services - Printing & Signs · FDD Items 3, 4 & 5

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Moderate — Review

3 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
3
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
65 / 100
FranchiseVerdict composite
Rating
MODERATE
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
Michigan
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 financial performance disclosure (avg revenue/net income not provided) makes ROI validation impossible
  2. 02MINOROnly 6 units system-wide with 100% YoY growth mathematically requires only 3 prior units — suggests nascent or severely contracted system
  3. 03MINORRecent 2025 consent order with Washington DFI regarding technology services fees indicates regulatory compliance issues post-FDD filing
  4. 04HIGHThree litigation/arbitration cases within past 7 years (two settled 2018, one ongoing 2025) shows dispute pattern with affiliates and franchisees
  5. 05MEDHigh royalty rate (7%) combined with undisclosed profitability creates uncertainty on net income viability
  6. 06HIGHGoing Concern = False is non-standard flag language; clarification needed on franchisor financial stability

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.