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B61/100FDD 2025

AeroWest — 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
61 / 100
FranchiseVerdict composite
Rating
MODERATE
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
1 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
Louisiana
State whose law governs disputes — relevant if you're not based there

What drove the 61/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 financial disclosure — cannot validate if $135,811 avg revenue translates to positive net income after 9% royalties + $28k franchise fee
  2. 02HIGHGoing Concern status is FALSE — suggests franchisor may have financial instability or operational uncertainty
  3. 03MINORTerritory NOT protected — franchisees may face internal competition and cannibalization from nearby units
  4. 04MINORUnit count at 34 with unknown growth trajectory — no visibility into system momentum or franchisee recruitment trends
  5. 05MINORHigh royalty burden (9%) on modest average revenue ($135,811) may compress margins below breakeven without strong cost control
  6. 06MINORWide investment range ($38.2k–$94.3k) suggests inconsistent startup costs or undefined scope of support

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.