FranchiseVerdict
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B56/100FDD 2023

Wanna Play Playcare — Litigation & Risk

Education - Children's Programs · FDD Items 3, 4 & 5

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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
56 / 100
FranchiseVerdict composite
Rating
MODERATE
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
1
Government-backed loans issued
Default rate
100.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$240K
Avg loan size
$240K
Participating lenders
1

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
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
Texas
State whose law governs disputes — relevant if you're not based there

What drove the 56/100 rating

Risk Score Breakdown

  1. 01MINOROnly 3 units operating with unknown/stagnant growth trajectory suggests minimal system traction after franchise launch
  2. 02HIGHGoing Concern = False indicates potential financial viability issues at corporate level, raising sustainability questions
  3. 03MEDNet Income not disclosed in FDD Item 19 prevents ROI validation; combined with only $350K avg revenue, profitability is opaque
  4. 04MINORHigh investment range ($256K-$458K) relative to average revenue ($350K) creates tight margin for error and long payback periods
  5. 05MEDExtremely small franchise system (3 units) offers minimal operational support infrastructure and limited peer learning network
  6. 06MINOR6% royalty on modest revenue base ($21K annual royalty on $350K sales) while carrying substantial debt load is concerning

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.