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A41/100FDD 2026

Unishippers — Litigation & Risk

Business Services - Shipping & Postal · 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
41 / 100
FranchiseVerdict composite
Rating
STRONG
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
28
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
$7.0M
Avg loan size
$250K
Participating lenders
19

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
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 41/100 rating

Risk Score Breakdown

  1. 01MINORUnit count declining 5.4% YoY (192 units) suggests system contraction and potential market saturation or franchisee dissatisfaction
  2. 02MINORNo average net income disclosure despite $1.82M avg revenue — inability or unwillingness to show profitability is a major transparency red flag
  3. 03MINORRoyalty structure is complex and aggressive (18.5% of gross profit for lighter shipments) with high minimum thresholds; profitability depends heavily on volume
  4. 04HIGHThree litigated disputes (RICO, breach of contract/fraud, misrepresentation/termination) indicate systemic tension between franchisor and franchisees over fee structures and performance standards
  5. 05MINORUnprotected territory creates direct competition risk; franchisees can cannibalize each other's revenue in same geographic area
  6. 06MINORHigh franchise fee ($30K) combined with declining unit count suggests franchisees are not reinvesting or recruiting
  7. 07HIGHGoing concern status = False is ambiguous; clarify whether this means franchisor is stable or at risk

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.