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A49/100FDD 2025

Uptown Cheapskate — Litigation & Risk

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

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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
Overall risk score
49 / 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
100
Government-backed loans issued
Default rate
8.6%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
3 loans
Loans charged off or defaulted
Total loan volume
$42.7M
Avg loan size
$427K
Participating lenders
23

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

What drove the 49/100 rating

Risk Score Breakdown

  1. 01HIGH2014-2015 litigation alleging unlawful earnings claims and inadequate franchisee support, resulting in $186,750 liability judgment against franchisor
  2. 02MINORFranchisor failed in fiduciary duty to advise franchisee on lease negotiations, indicating potential systemic support gaps
  3. 03MINOR11.2% YoY unit growth is modest for a 143-unit system; insufficient data on unit profitability consistency across portfolio
  4. 04MINORHigh investment-to-net-income ratio: $328K-$596.5K initial cost against $188K average net income suggests 1.7-3.2 year payback period with execution risk
  5. 05MINORNo Item 19 financial performance representation provided; averages may mask significant variation in franchisee outcomes

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.