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F84/100FDD 2025

1-800-Plumber +Air — Litigation & Risk

Home Services - Plumbing & HVAC · FDD Items 3, 4 & 5

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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
28
Government-backed loans issued
Default rate
42.9%
vs <3% typical · system-wide
5-yr default 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

What drove the 84/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 (average unit volumes) disclosed — impossible to assess ROI or payback period against $159k-$327k investment
  2. 02MEDSmall system (54 units) with modest 13.6% YoY growth — limited scale, higher operational risk, reduced support infrastructure
  3. 03MINORHigh initial investment ($54.5k franchise fee + $159k-$327k total) relative to system size and transparency
  4. 04MED4-6% royalty on undisclosed revenues creates earnings uncertainty — franchisees cannot benchmark profitability
  5. 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.