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D75/100FDD 2025

Willowbrae Academy — 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
75 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

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 75/100 rating

Risk Score Breakdown

  1. 01MINORZero existing franchise units with unknown growth trajectory indicates brand has never successfully scaled or is in early/failed launch phase
  2. 02HIGHGoing Concern status = False suggests franchisor financial instability or viability concerns
  3. 03MINORNo average revenue or net income disclosure (Item 19) prevents realistic ROI calculation on $2.4M–$4M investment
  4. 04MINORHigh initial investment ($2.4M–$4M) paired with mandatory $10K monthly minimum royalty creates significant fixed-cost burden regardless of sales performance
  5. 05MINOR10-year term is lengthy commitment with no demonstrated unit economics or franchisee success stories to validate model
  6. 06MINOREducation/academy sector requires substantial local market penetration and reputation—franchisees bear reputational and regulatory risk for unproven brand

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.