B64/100FDD 2023
BiltRite Home Inspections — 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
64 / 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
North Carolina
State whose law governs disputes — relevant if you're not based there
What drove the 64/100 rating
Risk Score Breakdown
- 01MEDOnly 4 units in system with unknown growth trajectory indicates extremely limited operating history and franchisee validation pool
- 02MEDNo Item 19 (Financial Performance Representation) disclosed despite $371,690 average net income claim — cannot independently verify earnings
- 03HIGHGoing Concern = False suggests franchisor may lack financial stability or have undisclosed operational challenges
- 04MINORHigh royalty burden (5-7% blended) on $1M average revenue reduces net margins for franchisees by $50K-$70K annually
- 05MINORMicro-franchise system (4 units) means insufficient data to assess unit economics, franchisee satisfaction, or failure rates
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.