F84/100FDD 2026
Zoom Room — Litigation & Risk
Personal Services - Pet Care · 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
84 / 100
FranchiseVerdict composite
Rating
AVOID
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
47
Government-backed loans issued
Default rate
42.9%
vs <3% typical · system-wide
5-yr default rate
50.0%
Defaults
3 loans
Loans charged off or defaulted
Total loan volume
$10.7M
Avg loan size
$227K
Participating lenders
12
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
California
State whose law governs disputes — relevant if you're not based there
What drove the 84/100 rating
Risk Score Breakdown
- 01MINORUnit count declining 9.4% YoY (60 units) signals system contraction and potential demand softness
- 02MINORNet income of $33,663 on $409,758 revenue = 8.2% net margin, barely covering 8% royalty obligations with minimal profit
- 03MINORHigh initial investment ($302k-$465k) paired with thin margins creates extended payback period and elevated financial stress
- 04MINORWide gap between average revenue ($409k) and average net income suggests inconsistent unit performance and operational challenges
- 05MINOR8% royalty on weekly gross sales (not net) increases franchisee burden during revenue downturns
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.