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Speedy Freight

Speedy Freight Franchising LLC
https://us.speedyfreight.com
1-800-710-6812
5251 Frye Rd, Suite 150, Irving, Texas 75061
FDD Version:

How much does Speedy Freight cost?

Initial Investment Range

$71,900 to $467,550

Franchise Fee

$54,500 to $142,050

Speedy Freight businesses provide shipping, consulting, customer service, logistics, and other business services using third party international, airfreight, express truck, and other shipping services through one or more domestic and international carrier companies.

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Speedy Freight April 3, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: August 21, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
2
3
5

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The FDD includes only an unaudited opening balance sheet. This statement shows a significant negative net worth of approximately $1.5 million as of November 2024. Operating with such a substantial deficit raises concerns about the franchisor's financial stability and its ability to fund its support obligations without relying heavily on new franchise fees. The lack of audited financials further increases the risk.

Potential Mitigations

  • An experienced franchise accountant must review these unaudited financials and discuss the implications of the negative net worth.
  • It is critical to ask the franchisor about their capitalization plans and how they will fund operations and support services.
  • Your attorney should investigate if any state has required a financial assurance bond or fee escrow due to these financial conditions.
Citations: Item 21, Exhibit B

High Franchisee Turnover

Low Risk

Explanation

As a new franchisor, Speedy Freight Franchising LLC (Speedy Freight) has no history of franchisee turnover to report in Item 20. Therefore, this specific risk was not identified. For any franchise system, however, high turnover can be a major red flag indicating potential problems with profitability, franchisor support, or the business model itself.

Potential Mitigations

  • While not applicable here, for established systems, an accountant should help you analyze the turnover rates in Item 20.
  • Engaging a business advisor to research typical turnover rates for the industry can provide valuable context.
  • Consulting with your attorney on how to question former franchisees is a key part of due diligence.
Citations: Not applicable

Rapid System Growth

Medium Risk

Explanation

The franchisor is new to the U.S. and projects opening 14 new franchised outlets in the next year from a base of zero. Such rapid planned expansion for a new system with limited U.S. operational history may strain its ability to provide adequate training and support to all new franchisees.

Potential Mitigations

  • In discussions with the franchisor, inquire specifically about their plans and personnel for scaling support services.
  • A business advisor can help you assess whether the franchisor's infrastructure appears adequate for their growth targets.
  • Your accountant should review the franchisor's financials in Item 21 to determine if they are capitalized to support this growth.
Citations: Item 20

New/Unproven Franchise System

High Risk

Explanation

Speedy Freight is a new franchisor in the United States, having been formed in 2023 and starting to offer franchises in 2025. The system has only one company-owned outlet and no established network of U.S. franchisees. This lack of a track record presents significant risks regarding the viability of the business model, the effectiveness of support systems, and overall brand recognition in the U.S. market.

Potential Mitigations

  • Engage a business advisor to conduct extensive due diligence on the UK affiliate's performance and the U.S. management's experience.
  • Your accountant must carefully scrutinize the limited financial data and projections due to the lack of U.S. operating history.
  • Your attorney may be able to negotiate more franchisee-favorable terms to compensate for the higher risks of an unproven system.
Citations: Items 1, 20, 21

Possible Fad Business

Low Risk

Explanation

The risk of the business being a fad was not identified. The logistics and shipping services industry is a well-established and essential part of the economy, not typically subject to short-term trends. However, for any investment, assessing long-term market demand is crucial.

Potential Mitigations

  • A business advisor can help you research the long-term outlook and competitive landscape for the logistics industry in your local market.
  • Discuss the franchisor's strategies for adapting to technological changes and competition with their management.
  • Your financial advisor can help assess the business model's resilience to economic cycles.
Citations: Not applicable

Inexperienced Management

Medium Risk

Explanation

While the franchisor's parent company and several executives have extensive experience in the UK, the U.S. franchising entity is new. This lack of a long-term track record in managing a franchise system specifically within the U.S. regulatory and competitive environment could present challenges. Your success may depend on their ability to adapt their model and support systems effectively to the U.S. market.

Potential Mitigations

  • Inquire about the specific U.S. market experience of the key executives who will be supporting your business.
  • A business advisor can help you assess how the UK model might translate to the U.S. market.
  • Discuss the U.S. support team's structure and autonomy with the franchisor.
Citations: Items 1, 2

Private Equity Ownership

Low Risk

Explanation

The FDD does not indicate that the franchisor or its parent company is owned by a private equity firm. Therefore, risks associated with short-term investment horizons or profit-driven strategies often linked to PE ownership were not identified.

Potential Mitigations

  • An attorney can help you investigate the ownership structure of any franchisor to identify ultimate controlling parties.
  • When PE ownership is present, a business advisor can help research the firm’s reputation with other franchise systems.
  • Speaking with existing franchisees about any changes since a PE acquisition is a key due diligence step.
Citations: Not applicable

Non-Disclosure of Parent Company

Medium Risk

Explanation

The FDD discloses a UK-based parent and affiliate, but does not provide their financial statements. Since the U.S. franchisor is a new entity with a significant negative net worth and relies on its UK affiliate's intellectual property and experience, the absence of the affiliate's financials makes it difficult to assess the overall financial strength and stability of the entire system backing your franchise.

Potential Mitigations

  • Your accountant should assess the risk posed by the new U.S. entity's financial weakness in the absence of parent financials.
  • You should ask the franchisor why the parent or key affiliate's financials are not included and if they will provide them.
  • Your attorney can review licensing agreements to understand the stability of your right to use the brand's intellectual property.
Citations: Items 1, 21

Predecessor History Issues

Low Risk

Explanation

The franchisor states in Item 1 that it does not have a predecessor. Therefore, risks associated with a negative history from a prior owner of the system were not identified.

Potential Mitigations

  • In any FDD, your attorney should carefully review Item 1 for any mention of predecessors.
  • When a predecessor exists, researching their history for litigation or bankruptcy can be a valuable step for a business advisor.
  • Questioning long-term franchisees about their experience under a predecessor provides important context.
Citations: Not applicable

Pattern of Litigation

Low Risk

Explanation

Item 3 of the FDD discloses no litigation history. This is expected for a new franchisor and means that a pattern of disputes with other franchisees, a key red flag, is not present.

Potential Mitigations

  • An attorney should always carefully review Item 3 for any disclosed litigation, paying close attention to claims of fraud or breach of contract.
  • For established systems, your attorney can conduct independent searches for litigation not required to be disclosed in the FDD.
  • Discussing any disclosed litigation with the franchisees involved can provide valuable insight.
Citations: Not applicable
2

Disclosure & Representation Risks

Total: 15
5
1
9

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

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3

Financial & Fee Risks

Total: 10
4
5
1

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.

4

Legal & Contract Risks

Total: 16
8
5
3

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.

5

Territory & Competition Risks

Total: 5
2
3
0

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.

6

Regulatory & Compliance Risks

Total: 10
4
4
2

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.

7

Franchisor Support Risks

Total: 4
2
2
0

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.

8

Operational Control Risks

Total: 12
6
3
3

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.

9

Term & Exit Risks

Total: 18
12
6
0

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.

10

Miscellaneous Risks

Total: 2
1
1
0

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.