FranchiseVerdict
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B61/100FDD 2024

YEL! Youth Enrichment League — 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
61 / 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
Minnesota
State whose law governs disputes — relevant if you're not based there

What drove the 61/100 rating

Risk Score Breakdown

  1. 01MINOROnly 5 operating units with unknown growth trajectory suggests minimal system traction and scale
  2. 02HIGHGoing Concern flag is FALSE — indicates financial instability or uncertainty at franchisor level
  3. 03MINORNo Item 19 financial performance representation limits ability to validate the $72,010 average net income claim
  4. 04MINOR6% royalty on $209k average revenue = $12.6k annually, but high initial investment ($57-83k) creates long payback period
  5. 05MINORExtremely small franchise system increases risk of franchisor viability and support quality
  6. 06MINORYouth enrichment/education sector has thin margins and high sensitivity to enrollment/seasonal volatility

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.