A32/100FDD 2025
911 Restoration — Litigation & Risk
Cleaning - Commercial & Janitorial · FDD Items 3, 4 & 5
Elevated Risk
11 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
11
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
32 / 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
39
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$15.5M
Avg loan size
$398K
Participating lenders
20
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
California
State whose law governs disputes — relevant if you're not based there
What drove the 32/100 rating
Risk Score Breakdown
- 01MINORStagnant unit growth (1.2% YoY) indicates mature or declining system with minimal expansion momentum
- 02HIGHMultiple pending litigations across 5+ states involving breach of contract, fraud, and trademark infringement suggest systemic operational or compliance issues
- 03MINORNo average net income disclosure prevents ROI verification despite $124.9K-$327.7K investment range and 9% royalty burden
- 04MINORUnprotected territory creates direct competition from other franchisees and company-owned locations within same market
- 05MINORDual royalty structure (9% restoration / 3% non-restoration) incentivizes lower-margin service mix and revenue manipulation
- 06HIGHGoing Concern = False with litigation exposure raises questions about franchisor financial stability to support franchisees
- 07MINORNo Item 19 financial performance data available for due diligence despite $826K average revenue claims
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.