F80/100FDD 2022
ACE DuraFlo — Litigation & Risk
Cleaning - Commercial & Janitorial · FDD Items 3, 4 & 5
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
80 / 100
FranchiseVerdict composite
Rating
AVOID
STRONG / MODERATE / CAUTION / AVOID
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
Nevada
State whose law governs disputes — relevant if you're not based there
What drove the 80/100 rating
Risk Score Breakdown
- 01MINORSystem declining 9.1% YoY (11 units total) suggests weak franchise model viability
- 02MEDNo average revenue or net income disclosed (Item 19) prevents ROI assessment and indicates potential franchisor transparency issues
- 03MINORWide investment range ($19.1K–$415K) with no correlation data raises questions about cost structure and scalability
- 04MINORNo protected territory creates direct competition risk and cannibalization between franchisees
- 05MINORHigh franchise fee ($34.9K) relative to small system size and declining unit count signals potential revenue dependency on recruitment
- 06MED8%/6% tiered royalties on undisclosed revenue base makes profitability modeling impossible for prospects
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.