A53/100FDD 2021
You Move Me — Litigation & Risk
Business Services - Shipping & Postal · FDD Items 3, 4 & 5
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
53 / 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
2
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
$246K
Avg loan size
$123K
Participating lenders
2
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Not required
You retain the right to sue in court
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
Washington
State whose law governs disputes — relevant if you're not based there
What drove the 53/100 rating
Risk Score Breakdown
- 01MEDNo Item 19 (Average Unit Volume) disclosed - impossible to validate the $1.18M average revenue claim or project ROI
- 02MEDOnly 15 units system-wide indicates minimal scale, limited support infrastructure, and high per-unit overhead costs
- 03MINORHigh initial investment ($106.5K-$218.9K) relative to system size creates significant risk if franchisee underperforms
- 04MINORPrior regulatory violation (2017 California consent order) demonstrates compliance and disclosure issues during franchise registration
- 05MINORTiered royalty structure (7% base, 3% above prior year revenue) creates complex accounting and potential franchisor-franchisee disputes over gross revenue calculations
- 06MINORUnknown unit growth trajectory - no visibility into system expansion, stability, or franchisee success rates
- 07MEDNet income not disclosed - cannot determine actual profitability or sustainability of franchise model
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.