Mobility City
Initial Investment Range
$255,350 to $653,800
Franchise Fee
$47,500 to $267,500
The franchise that we offer is for Mobility City, a business providing mobile repairs, rentals, sales, white glove delivery, sanitization of mobility equipment, and other products and services.
Enjoy our complimentary free risk analysis below
Unlock the full risk analysis to access 9 more categories covering 100+ risks.
Mobility City March 24, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: July 16, 2025
DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
Mobility City Holdings, Inc.'s (MCHI) 2024 audited balance sheet shows a significant stockholders' deficit of ($1,028,111), meaning total liabilities exceed total assets. While the company has been profitable for the last two years, this accumulated deficit from prior losses may indicate historical financial fragility. This could potentially affect MCHI's ability to provide long-term support or invest in the system's growth, presenting a risk to your investment.
Potential Mitigations
- An experienced franchise accountant should thoroughly analyze the franchisor's complete financial statements, including footnotes and cash flow statements, to assess its true operational health.
- It is wise to discuss the implications of the franchisor's negative net worth with your financial advisor to understand the potential impact on your business.
- Your attorney can help you ask the franchisor direct questions about its capitalization plan and its ability to support franchisees long-term.
High Franchisee Turnover
Medium Risk
Explanation
Item 20 data shows a modest number of terminations and ceased operations over the past three years. However, a more significant risk is the disclosure that some former franchisees have signed provisions restricting their ability to speak openly. This practice, often called a 'gag clause,' can make it difficult for you to conduct thorough due diligence, as you may not get a complete picture of the franchisee experience, potentially concealing systemic issues.
Potential Mitigations
- It's crucial to speak with a diverse group of current and former franchisees from the lists in Item 20 to gather a wide range of perspectives.
- When conducting due diligence calls, a business advisor can help you frame questions that encourage open discussion about challenges and support levels.
- Your attorney should be consulted to understand the implications of these confidentiality provisions on your ability to assess the franchise system.
Rapid System Growth
Medium Risk
Explanation
The franchise system has grown rapidly, from 16 to 45 franchised outlets in three years. While growth can be positive, this pace, combined with the franchisor's negative equity position noted in Item 21, could present a risk. A franchisor expanding this quickly may strain its financial and personnel resources, potentially compromising its ability to provide the promised training, site selection, and ongoing operational support to all franchisees effectively.
Potential Mitigations
- A discussion with your business advisor is recommended to evaluate if the franchisor's support infrastructure is scaling adequately with its unit growth.
- You should ask current franchisees about the quality and timeliness of support they currently receive from the corporate office.
- Your accountant can assess the franchisor's financials to determine if they have allocated sufficient capital to support this expansion.
New/Unproven Franchise System
Medium Risk
Explanation
Mobility City Holdings, Inc. began franchising in late 2017. While it is not a brand-new startup, the system is still relatively young and has only demonstrated profitability in the last two years, while still carrying a significant accumulated deficit. Investing in a younger system carries inherent risks, including the possibility of underdeveloped operational systems, evolving support structures, and a brand that is still building widespread recognition, which could impact your business's ramp-up period.
Potential Mitigations
- A thorough investigation of the management team's prior industry and franchising experience should be conducted with your business advisor.
- Contacting some of the earliest franchisees in the system can provide valuable insight into how the franchisor's support and systems have evolved.
- An accountant's review of the financials is critical to assess the stability and capitalization of a younger franchise company.
Possible Fad Business
Low Risk
Explanation
The business of repairing, renting, and selling mobility equipment serves a growing demographic market, particularly with an aging population. This appears to be a sustainable business model based on long-term societal trends rather than a short-lived fad. Therefore, this specific risk was not identified in the FDD package.
Potential Mitigations
- It is still prudent to have a business advisor help you research long-term market trends and competitive factors in your specific local area.
- To gauge sustainability, an accountant can help you model the business's resilience to various economic conditions.
- Engaging a legal professional to review the agreement ensures your long-term obligations are clear, regardless of market shifts.
Inexperienced Management
Low Risk
Explanation
This risk was not identified. Item 2 indicates that the key executives, Diane and Vincent Baratta, have been involved with the affiliated retail mobility business since 2015 and the franchisor since its founding in 2017. This suggests they possess relevant operational experience in the specific industry. In franchising, experienced leadership is important for providing effective support and strategic direction.
Potential Mitigations
- A business advisor can still help you research the backgrounds of all key management personnel to confirm their franchising and industry-specific expertise.
- Discussing the management team's accessibility and effectiveness with current franchisees provides valuable real-world insight.
- Your attorney can help you formulate questions for the franchisor about their management team's experience in supporting franchisees.
Private Equity Ownership
Low Risk
Explanation
This risk was not identified in the FDD package. Item 1 does not disclose ownership by a private equity firm. This is important because private equity ownership can sometimes introduce a focus on short-term returns, which may not always align with the long-term health of franchisees. Since this is not present, this specific risk does not appear to apply.
Potential Mitigations
- It remains good practice for your attorney to verify the full ownership structure of the franchisor entity.
- Engaging a business advisor to understand the franchisor's long-term goals and exit strategy is always a prudent step.
- Your accountant can review the financial statements for any signs of debt structures or transactions typical of private equity involvement.
Non-Disclosure of Parent Company
Low Risk
Explanation
This risk was not identified. The franchisor, Mobility City Holdings, Inc., is presented as the primary entity in Item 1, and there is no mention of a parent company. Affiliated companies are disclosed. When a franchisor is a subsidiary, the financial health of the parent can be material, but that does not appear to be the case here.
Potential Mitigations
- Your attorney can perform a corporate search to confirm the ownership structure and ensure there is no undisclosed controlling parent entity.
- A discussion with your accountant about the franchisor's standalone financial strength remains a critical step.
- You should ask the franchisor to confirm in writing that there is no parent company whose obligations or financial health could impact the system.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified. Item 1 of the FDD clearly states, "We do not have any predecessors." A predecessor is a company from which the franchisor acquired the main assets of the business. The absence of a predecessor means the business history presented is that of the current management team, which simplifies due diligence.
Potential Mitigations
- Your attorney can help verify the franchisor's corporate history to confirm the 'no predecessors' statement.
- Speaking with a business advisor to assess the full history of the brand and its founders is still a valuable due diligence step.
- Reviewing the management team's experience in Item 2 with your accountant provides context for the company's background.
Pattern of Litigation
Medium Risk
Explanation
Item 3 discloses a past arbitration initiated by a former franchisee against the franchisor and its principals. The claims included allegations that the franchisor failed to advise them about necessary licenses and misrepresented the business model. Although this single case was settled, the nature of the allegations is serious and directly relates to the franchise sales and disclosure process. This suggests a potential risk regarding the clarity and accuracy of pre-sale information.
Potential Mitigations
- A thorough review of the details of this litigation with your franchise attorney is essential to understand its potential implications.
- It is wise to ask the franchisor directly about the dispute and what, if any, changes were made to their processes as a result.
- A business advisor can help you formulate questions for other franchisees about their experiences with the topics raised in the lawsuit.
Disclosure & Representation Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Financial & Fee Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Legal & Contract Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Territory & Competition Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Regulatory & Compliance Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Franchisor Support Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Operational Control Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Term & Exit Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Miscellaneous Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Related Retail Franchises
Apricot Lane
$168,950 to $360,300
Big Frog Custom T-Shirts
$163,987 to $323,110
Cookie Advantage
$92,550 to $171,250
Flowerama
$18,500 to $1,169,000
GNC
$112,219 to $503,642
Medicap Pharmacy
$130,000 to $894,876
Midwest Shooting Center
$1,828,650 to $3,556,600
Miracle-Ear
$120,000 to $402,500
Mrs. Fields Franchising
$188,860 to $495,850
Nutrishop
$45,500 to $251,500
Sign*A*Rama
$109,182 to $355,709
Tempur Franchising Us, LLC
$953,000 to $1,653,000