![Aire-Master logo](https://cdn.brandfetch.io/airemaster.com/w/128/h/128/fallback/lettermark?c=<img src="https://cdn.brandfetch.io/domain/apple.com?c=1idsvcTjLv919Ax0E2s" alt="Logo by Brandfetch" />){kind=small}
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
72 / 100
FranchiseVerdict composite
Rating
CAUTION
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
5
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
$1.7M
Avg loan size
$343K
Participating lenders
5
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
3 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
Missouri
State whose law governs disputes — relevant if you're not based there
What drove the 72/100 rating
Risk Score Breakdown
- 01MEDNet income not disclosed in Item 19 — cannot validate profitability claims or ROI timeline
- 02MINORMinimal system growth (1.7% YoY) with only 124 units suggests stagnant or declining market demand
- 03MINORAverage revenue of $29,723 annually is extremely low — unclear if this is monthly or annual, raising disclosure concerns
- 04MINORHigh franchise fee ($50,000) relative to average reported revenue creates unfavorable payback ratio
- 05MINORRoyalty structure with $250 minimum monthly ($3,000 annually) represents 10%+ of average revenue for struggling units
- 06MINOR3-year term is shorter than industry standard (5-10 years), increasing renewal/replacement risk
- 07HIGHNo going concern statement but stagnant growth and undisclosed profitability warrant financial stability questions
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.