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D72/100FDD 2025

William Raveis — Litigation & Risk

Real Estate · 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
72 / 100
FranchiseVerdict composite
Rating
CAUTION
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
Non-compete
0.5 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
Connecticut
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MEDSevere unit decline of 35.3% year-over-year indicates systemic problems or market contraction
  2. 02MINORNo average revenue or net income disclosure prevents ROI assessment and suggests poor performer visibility
  3. 03MINORUnprotected territory creates direct competition risk from other franchisees and company-owned locations
  4. 04HIGHGoing Concern status is FALSE, raising questions about franchisor financial stability and support continuity
  5. 05MINORWide investment range ($75K-$280.5K) suggests highly variable startup costs with unclear scaling
  6. 06MED6% royalty on gross commission income (not net) means franchisees pay even during unprofitable periods
  7. 07MINORReal estate/brokerage model heavily dependent on local market conditions and agent recruitment

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.