FranchiseVerdict
Asurion Tech Repair & Solutions logo
B59/100FDD 2024

Asurion Tech Repair & Solutions — Litigation & Risk

Home Services - Other · FDD Items 3, 4 & 5

Back to overview

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
59 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

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
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 59/100 rating

Risk Score Breakdown

  1. 01MEDUnit count declined 9.2% YoY (698 units), indicating system contraction and potential saturation or franchisee struggles
  2. 02HIGHLitigation involving fraud and disclosure allegations settled in 2021 suggests prior compliance issues and trust concerns
  3. 03MEDNo disclosed average revenue or net income (Item 19 missing) prevents validation of franchise profitability claims
  4. 04MINORDual royalty structure (7% vs. 4%) creates complexity and potential revenue volatility depending on sales mix
  5. 05MINORHigh initial investment range ($118k–$370k) with declining unit count raises ROI recovery risk

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.