B65/100FDD 2025
Bath Fitter — Litigation & Risk
Home Services - Other · 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
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
9
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$5.3M
Avg loan size
$584K
Participating lenders
1
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
New York
State whose law governs disputes — relevant if you're not based there
What drove the 65/100 rating
Risk Score Breakdown
- 01MEDNo Item 19 financial disclosure (Average Revenue and Net Income not disclosed) — impossible to validate ROI claims
- 02MINORRoyalty fee structure is undefined and discretionary — franchisor can impose up to 2.5% retroactively, creating unpredictable cost burden
- 03MEDStagnant unit growth (1.0% YoY) suggests market saturation, franchisee struggles, or brand decline in a mature bathroom remodeling sector
- 04MEDHigh initial investment range ($225.5K–$515.5K) with no disclosed average revenue or profitability benchmarks — cannot assess payback period
- 05HIGHGoing Concern status is FALSE — indicates potential financial instability of franchisor itself, threatening support and system viability
- 06MINOR5-year term is relatively short in franchise context — may indicate franchisor hesitancy or frequent renegotiation disputes
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.