DBelow average36/100FDD 2026
1-800-Plumber +Air: Litigation & Risk
Home Services · 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)
- None
- Franchisor or officer bankruptcy
- Verdict score
- 36 / 100
- FranchiseVerdict composite · higher is better
- Rating
- D
- A / B / C / D / F verdict grade
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Charge-off rate is the share of loans that were charged off or settled for less than the full balance.
- Total 7(a) loans
- 28
- Government-backed loans issued
- Charge-off rate
- 10.7%
- vs 16% franchise average
- 5-yr charge-off rate
- 33.3%
- Defaults
- 3 loans
- Loans charged off or defaulted
- Total loan volume
- $5.8M
- Avg loan size
- $205K
- Participating lenders
- 4
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
- Texas
- State whose law governs disputes. Relevant if you're not based there
Extracted from FDD Item 3
Litigation Detail
No litigation is required to be disclosed in Item 3.
What drove the 36/100 verdict
Risk Score Breakdown
- 01MEDNo Item 19 (average unit volumes) disclosed — impossible to assess ROI or payback period against $159k-$327k investment
- 02MEDSmall system (54 units) with modest 13.6% YoY growth — limited scale, higher operational risk, reduced support infrastructure
- 03MINORHigh initial investment ($54.5k franchise fee + $159k-$327k total) relative to system size and transparency
- 04MED4-6% royalty on undisclosed revenues creates earnings uncertainty — franchisees cannot benchmark profitability
- 05HIGHNo 'going concern' status suggests potential franchisor stability questions or recent reorganization
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.