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B59/100FDD 2025

1-Tom-Plumber — Litigation & Risk

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

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
59 / 100
FranchiseVerdict composite
Rating
MODERATE
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
12
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$4.0M
Avg loan size
$335K
Participating lenders
9

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
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
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 59/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 financial disclosure (average revenue/net income not disclosed) prevents ROI validation
  2. 02HIGHActive litigation involving non-compete/royalty collection suggests enforcement disputes and franchisee disputes
  3. 03MINORHigh investment range ($515K–$2.8M) with 6% royalty creates significant break-even pressure without earnings data
  4. 04MINORRapid unit growth (60.9% YoY) may indicate aggressive recruitment masking underlying unit economics or retention issues
  5. 05HIGHGoing Concern flagged as False despite strong growth, suggesting potential franchisor financial instability
  6. 06MEDOnly 43 total units indicates nascent system with limited track record and operational maturity

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.