Moderate — Review
4 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
4
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
53 / 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
29
Government-backed loans issued
Default rate
5.9%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$21.5M
Avg loan size
$740K
Participating lenders
25
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
3 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
Varies
State whose law governs disputes — relevant if you're not based there
What drove the 53/100 rating
Risk Score Breakdown
- 01MINORSystem declining with only 0.9% YoY unit growth despite 3,027 locations, indicating market saturation or franchisee dissatisfaction
- 02MINORFour collection lawsuits initiated in FY2025 suggest cash flow problems among franchisees or aggressive franchisor enforcement tactics
- 03MEDNo disclosed average revenue or net income (missing Item 19) prevents proper ROI analysis and suggests franchisor may be hiding unfavorable unit economics
- 04MINORWide investment range ($500-$450,000) lacks clarity on what drives cost variance and actual startup requirements
- 05MINORStagnant growth in optometry/vision care market with increasing competition from retail chains (Warby Parker, Zenni, retail optometrists)
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.