D72/100FDD 2026
Biosweep — Litigation & Risk
Automotive - Repair & Service · FDD Items 3, 4 & 5
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
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
1
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
$50K
Avg loan size
$50K
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
Indiana
State whose law governs disputes — relevant if you're not based there
What drove the 72/100 rating
Risk Score Breakdown
- 01HIGHGoing Concern status is FALSE — indicates parent company financial distress or viability uncertainty
- 02HIGHRecent litigation (PurAyr settlement August 2024) suggests competitive/IP disputes in the odor elimination space
- 03MEDNo Average Revenue or Net Income disclosed in FDD Item 19 — impossible to validate ROI on $160k-$186k investment
- 04MINOROnly 42 units system-wide with unknown growth trajectory — extremely small franchise network with unclear momentum
- 05MINORRoyalty structure ($1.25/hour equipment use) creates revenue dependency on franchisee execution and market demand
- 06MINORHigh franchise fee ($45k) relative to system size and lack of performance transparency raises sustainability concerns
- 07MINOR5-year term is relatively short in franchise context — suggests franchisor may lack confidence in long-term model
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.