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B65/100FDD 2025

Abbey Carpet & Floor — Litigation & Risk

Home Services - Other · 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
65 / 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
9
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
$6.3M
Avg loan size
$695K
Participating lenders
9

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
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
No
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 65/100 rating

Risk Score Breakdown

  1. 01MINORUnit count declining YoY (-0.7%), indicating system contraction despite low barrier-to-entry franchise fee
  2. 02MINORNo Item 19 (Avg Revenue/Net Income) disclosure prevents ROI validation; cannot assess whether $23k-$62k investment generates acceptable returns
  3. 03HIGH2019 litigation regarding non-recruit clauses suggests franchisor-franchisee relationship tension and past overreach in franchise agreement terms
  4. 04MINORLow monthly royalty ($400) may indicate franchisor under-investment in franchisee support or reliance on franchise fees for revenue
  5. 05MINORMature carpet/flooring retail category facing secular headwinds from big-box competitors (Home Depot, Lowe's) and direct-to-consumer online models

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.