D72/100FDD 2025
Bluefrog Plumbing + Drain — Litigation & Risk
Home Services - Plumbing & HVAC · 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
13
Government-backed loans issued
Default rate
33.3%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$2.8M
Avg loan size
$213K
Participating lenders
9
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
Texas
State whose law governs disputes — relevant if you're not based there
What drove the 72/100 rating
Risk Score Breakdown
- 01MEDUnit count declined 16.7% YoY (35 units) — indicates system contraction and potential franchisee struggles
- 02MEDNo average net income disclosed — inability to verify profitability claims or validate the $1.17M avg revenue translates to viable earnings
- 03MINORUnprotected territory — franchisees face direct competition from other BlueFrog locations and brand cannibalization risk
- 04MINORTiered royalty structure with $500-$1,500 monthly minimum floor — aggressive fee collection even during slow revenue months
- 05HIGH2014 litigation by affiliate (Restoration 1) for selling unregistered franchises — indicates compliance and disclosure concerns within parent company operations
- 06MINORHigh initial investment ($144k-$345k) combined with declining unit performance — raises ROI and market saturation questions
- 07MINORVague Item 19 data — average revenue provided but no median, range, or franchisee profitability breakdown limits transparency
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.