FranchiseVerdict
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A44/100FDD 2026

Yesco — Litigation & Risk

Business Services - Printing & Signs · FDD Items 3, 4 & 5

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
44 / 100
FranchiseVerdict composite
Rating
STRONG
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
10
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$4.3M
Avg loan size
$428K
Participating lenders
6

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
Utah
State whose law governs disputes — relevant if you're not based there

What drove the 44/100 rating

Risk Score Breakdown

  1. 01MINORDeclining unit count (-1.8% YoY) suggests system contraction and potential franchisee struggles
  2. 02MEDHigh initial investment range ($65K-$432K) with no disclosed average net income creates ROI uncertainty
  3. 03HIGHSignificant litigation history (2015-2018) involving breach of contract, misrepresentation, and covenant violations indicates franchisor-franchisee friction
  4. 04MINORNo protected territory means intense local competition and revenue cannibalization risk
  5. 05MINOR6% royalty on $1.09M average revenue equals ~$65K annual ongoing fees—nearly equivalent to franchise fee recovery period
  6. 06MINORNo Item 19 financial performance disclosure prevents validation of $1.09M average revenue claim across unit diversity

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.