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
60 / 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
Florida
State whose law governs disputes — relevant if you're not based there
What drove the 60/100 rating
Risk Score Breakdown
- 01MINORDeclining unit count: -7.1% YoY (27 units) indicates system contraction and potential franchisee dissatisfaction
- 02MEDExtreme royalty burden: 50% of net commissions is exceptionally high and leaves minimal margin for franchisee operations
- 03MEDNo Item 19 disclosure: Average Net Income not disclosed prevents validation of actual profitability claims
- 04MEDHigh initial investment with unclear ROI: $67,700-$112,600 investment with no disclosed net income creates uncertainty on payback period
- 05MINORRevenue concentration risk: $298,522 average revenue suggests dependency on consistent sales performance with 50% immediately claimed by franchisor
- 06HIGHGoing Concern status: False indicates potential financial instability at corporate level, raising franchisor sustainability questions
- 07MINORAggressive franchise fee: $50,000 upfront fee on a $67,700 minimum investment (74% of total) is capital-intensive for service-based model
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.