FranchiseVerdict
Bin There Dump That logo
A41/100FDD 2025

Bin There Dump That — Litigation & Risk

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
41 / 100
FranchiseVerdict composite
Rating
STRONG
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
22
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
$4.5M
Avg loan size
$204K
Participating lenders
11

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 41/100 rating

Risk Score Breakdown

  1. 01MEDNet income not disclosed in FDD despite $301K average revenue — profitability opaque and concerning
  2. 02MINOREscalating royalty structure ($600→$1,355/month per vehicle) creates significant cost burden in years 2-4; total royalties could exceed $16K annually on single vehicle
  3. 03HIGHLitigation history shows franchise agreement breaches and contempt of court (2021-2022); $35K in settlements indicates enforcement issues and franchisor-franchisee tension
  4. 04MINORModest unit growth of 9.7% YoY is underwhelming for a mature franchise; suggests market saturation or franchisee challenges
  5. 05MINORHigh initial investment ($116K-$235K) paired with withheld profitability data creates asymmetric risk for franchisees

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.