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B65/100FDD 2025

Tumbles — Litigation & Risk

Other · 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
65 / 100
FranchiseVerdict composite
Rating
MODERATE
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
8
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$2.6M
Avg loan size
$330K
Participating lenders
3

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
Texas
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MEDOnly 6 units system-wide indicates extremely limited scale and network support; virtually no franchisee community for peer learning
  2. 02MEDNet income not disclosed in Item 19 despite average revenue of $295,727 — impossible to validate actual profitability or ROI on $242.5k-$603k investment
  3. 03MINORHigh investment range ($360.5k spread) with no corresponding unit performance data suggests inconsistent site economics or unclear cost drivers
  4. 04MINORMinimum royalty of $1,500/month ($18k annually) represents 6.1% of average revenue even before 8% gross sales royalty kicks in — double royalty burden creates breakeven risk
  5. 05MINOR24-month grace period on royalties suggests franchisees may struggle with cash flow in early years, indicating business model weakness
  6. 06MINORUnknown unit growth trajectory with only 6 locations raises questions about system viability, franchisor commitment, and whether brand is contracting

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.