FranchiseVerdict
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A44/100FDD 2025

360clean — Litigation & Risk

Cleaning - Commercial & Janitorial · 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
44 / 100
FranchiseVerdict composite
Rating
STRONG
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
2
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$105K
Avg loan size
$53K
Participating lenders
1

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
South Carolina
State whose law governs disputes — relevant if you're not based there

What drove the 44/100 rating

Risk Score Breakdown

  1. 01MEDUnit count declined 5.5% YoY (69 units) suggesting system contraction and potential franchisee dissatisfaction
  2. 02MINORNo Item 19 (Average Net Income) disclosure limits transparency on actual profitability despite $272K average revenue
  3. 03MINORWide royalty range (7-14%) suggests variable performance tiers or unclear fee structure that could disadvantage underperformers
  4. 04MINORTerritory unprotected creates direct competition risk between franchisees and potential cannibalization of revenue
  5. 05MEDHigh initial investment ($43K-$58.8K) relative to disclosed average revenue without net income clarity creates payback uncertainty
  6. 06MINOR10-year term is unusually long for a service-based franchise, limiting franchisee flexibility to exit or pivot

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.