FWeakest tier24/100FDD 2025
United Check Cashing: Litigation & Risk
Financial Services · FDD Items 3, 4 & 5
Moderate: Review
1 case disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
- Cases disclosed
- 1
- Total from FDD Items 3 and 4
- Bankruptcy (Item 4)
- -
- Franchisor or officer bankruptcy
- Verdict score
- 24 / 100
- FranchiseVerdict composite · higher is better
- Rating
- F
- 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
- 46
- Government-backed loans issued
- Charge-off rate
- 25.0%
- vs 16% franchise average
- 5-yr charge-off rate
- N/A
- Defaults
- 8 loans
- Loans charged off or defaulted
- Total loan volume
- $8.0M
- Avg loan size
- $173K
- Participating lenders
- 12
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
- New Jersey
- State whose law governs disputes. Relevant if you're not based there
What drove the 24/100 verdict
Risk Score Breakdown
- 01MINORNegative net worth: -$32,855
- 02HIGHLitigation alleging civil conspiracy and conversion
- 03MINORSystem contraction: net growth -32.4%
- 04MINORTurnover 14.6%
- 05MINORfinancial_distress=true
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.