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D72/100FDD 2025

USL Super League — Litigation & Risk

Other · 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
72 / 100
FranchiseVerdict composite
Rating
CAUTION
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
5 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
No
Franchisor can match any purchase offer when you try to sell
Governing law
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MEDExtremely high franchise fee ($12M) with no disclosed average revenue or net income — impossible to calculate ROI
  2. 02HIGHActive litigation between USL and a team operator involving breach and fraudulent inducement claims, signaling operational/contractual disputes
  3. 03MINOROnly 8 units with unknown growth trajectory — suggests early-stage or stalled expansion despite massive capital requirements
  4. 04MINORNo Item 19 (Financial Performance Representations) disclosure — franchisor refuses to substantiate earnings claims
  5. 05HIGH'Going Concern' marked False — potential financial instability at corporate level
  6. 06MINOR$230K annual participation fee creates $1.84M cumulative cost over 10-year term on top of $12M initial investment
  7. 07MINORProfessional sports franchises are illiquid, high-operational-complexity businesses with structural profitability challenges

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.