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B55/100FDD 2025
World Options — Litigation & Risk
Business Services - Shipping & Postal · FDD Items 3, 4 & 5
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
55 / 100
FranchiseVerdict composite
Rating
MODERATE
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
7
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
$1.0M
Avg loan size
$146K
Participating lenders
3
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
Colorado
State whose law governs disputes — relevant if you're not based there
What drove the 55/100 rating
Risk Score Breakdown
- 01MINORExtremely high royalty rates (15-35% of gross margin) compress profitability and leave minimal net income cushion
- 02MEDNet income not disclosed in FDD — inability to verify actual franchisee profitability despite $1M+ revenue claims
- 03MINORUnprotected territory creates direct competition risk; 50% YoY unit growth suggests rapid market saturation potential
- 04MEDOnly 7 units total indicates very small, unproven franchise system with limited track record and peer support network
- 05MEDHigh initial investment ($81-93K) + $55K franchise fee ($136-148K total) against undisclosed net income creates ROI uncertainty
- 06MINORRoyalty structure tied to gross margin (not revenue) incentivizes franchisor to monitor cost accounting closely and creates disputes risk
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.