A52/100FDD 2026
V's Barbershop — Litigation & Risk
Personal Services - Beauty & Salon · FDD Items 3, 4 & 5
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
52 / 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
10
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
$2.7M
Avg loan size
$272K
Participating lenders
7
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
1 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
Arizona
State whose law governs disputes — relevant if you're not based there
What drove the 52/100 rating
Risk Score Breakdown
- 01MEDNo Item 19 (Average Unit Volume) disclosed — impossible to assess profitability or ROI; average revenue of $581,838 provided but net income withheld raises transparency concerns
- 02MEDMinimal system growth (3.3% YoY) with only 62 units suggests weak franchisee recruitment and retention; stagnant expansion indicates limited brand momentum
- 03MINORWide investment range ($290K-$690K) with no clear cost breakdown — high variance suggests inconsistent unit economics or location-dependent performance
- 04MINORUnprotected territory creates direct competition risk; franchisees in same market will cannibalize each other's revenue and customer base
- 05MINORTiered royalty structure (6% up to $600K, then 3.5%) incentivizes underreporting revenue; franchisor has financial motive to dispute gross sales figures
- 06MINORHigh upfront fees relative to unit growth — $40K franchise fee in slow-growing 62-unit system suggests recruitment struggles and potential cash flow dependency on fees rather than royalties
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.