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A50/100FDD 2025

Wize Computing 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
50 / 100
FranchiseVerdict composite
Rating
STRONG
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
Texas
State whose law governs disputes — relevant if you're not based there

What drove the 50/100 rating

Risk Score Breakdown

  1. 01MEDNet income not disclosed in FDD — cannot assess true profitability or ROI on $49K-$79K investment
  2. 02HIGHGoing Concern status is FALSE, indicating potential financial distress or uncertainty at franchisor level
  3. 03MINORRoyalty structure front-loaded (8% on first $250K) creates cash flow pressure during ramp-up phase when franchisees are most vulnerable
  4. 04MINOR45% YoY unit growth (from ~21 to 30 units) is aggressive growth that may indicate unsustainable expansion or recent system instability
  5. 05MINORAverage revenue of $109K against total investment of $49K-$79K yields thin margins after 8% royalties ($8.7K annually), leaving minimal buffer for owner salary, staff, rent, and overhead

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.