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D72/100FDD 2025

We Insure — Litigation & Risk

Business Services - Tax & Financial · FDD Items 3, 4 & 5

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Moderate — Review

2 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
2
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

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
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$650K
Avg loan size
$650K
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
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. 01MEDUnit count declined 20% YoY (157 units) indicating system contraction and potential franchisee struggle
  2. 02MINORNo average revenue or net income disclosure prevents ROI assessment and suggests poor performance metrics
  3. 03MEDHigh royalty structure (25-45% of commissions) creates earnings pressure, especially on renewal business at 45%
  4. 04HIGHTwo settled litigation cases alleging breach of contract and fraud signal franchisee-franchisor relationship breakdown
  5. 05MINORUnprotected territory creates competition risk within same market and cannibalization potential
  6. 06HIGHFalse 'Going Concern' status indicates franchisor financial stability questions
  7. 07MED$50,000 franchise fee with 20% unit decline suggests poor franchisee success and ROI recovery

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.