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
61 / 100
FranchiseVerdict composite
Rating
MODERATE
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
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
Indiana
State whose law governs disputes — relevant if you're not based there
What drove the 61/100 rating
Risk Score Breakdown
- 01HIGHGoing Concern status is FALSE — franchisor may face financial or operational viability issues
- 02MEDNet Income not disclosed in Item 19 — impossible to validate actual profitability claims against $137,831 avg revenue
- 03MINORUnknown unit growth trajectory — 42 units with no growth data suggests stagnation or inability to scale
- 04MED10% royalty on gross sales is high relative to disclosed average revenue ($13,783 annual royalty burden at average unit)
- 05HIGHNo litigation disclosed but going concern status raises questions about financial disputes or regulatory issues
- 06MEDLimited transparency — franchise fee ($20k) is modest but overall financial picture is opaque
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.