B65/100FDD 2026
Ace Handyman Services — Litigation & Risk
Home Services - Other · FDD Items 3, 4 & 5
Moderate — Review
4 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
4
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
94
Government-backed loans issued
Default rate
13.6%
vs <3% typical · system-wide
5-yr default rate
14.3%
Defaults
3 loans
Loans charged off or defaulted
Total loan volume
$14.7M
Avg loan size
$156K
Participating lenders
21
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
Colorado
State whose law governs disputes — relevant if you're not based there
What drove the 65/100 rating
Risk Score Breakdown
- 01MINORNo Item 19 financial disclosure (average unit revenue and net income) prevents ROI validation
- 02HIGHActive consumer litigation for defective work quality—core business risk exposure
- 03MINORSlow unit growth (3.8% YoY) suggests market saturation or franchisee underperformance
- 04MINORTrademark infringement settlement in Texas indicates brand/operational vulnerabilities
- 05HIGHParent company fraud allegations involving franchisees raise system integrity concerns
- 06MINORHigh franchise fee ($70,000) combined with unknown profitability creates breakeven uncertainty
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.