The frivolous litigation threat can include claims of unpaid royalties, such as computer license fees, and unpaid future royalties and fees, which were not specified, or agreed to, in the original franchise agreement.
All of these metrics are accessible in Item 20 of the Franchise Disclosure Document (FDD).
All franchisors selling franchises must update their FDDs at least once a year.
The Franchisee might no longer see the value in the brand and prefer the run the location as an independent business.
This is the broadest of the three categories, and a point of concern because it could be an indicator of franchise bankruptcy.