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A51/100FDD 2026

Boulder Designs® — Litigation & Risk

Home Services - Lawn & Landscaping · FDD Items 3, 4 & 5

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Moderate — Review

4 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
4
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
51 / 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
17
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

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
3 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 51/100 rating

Risk Score Breakdown

  1. 01MINORNo financial performance disclosure (Item 19) prevents ROI validation against $147k-$173k investment
  2. 02MINORDeceptive trade practices lawsuit by former franchisee signals potential misrepresentation in FDD or recruitment
  3. 03MINORThree franchisor lawsuits against franchisees indicate enforcement issues, trade secret disputes, and possible financial underperformance
  4. 04MINORSlow unit growth (6.5% YoY) with only 82 units suggests market saturation or franchisee dissatisfaction
  5. 05MINOREscalating minimum royalty fees ($750→$950→$1,500) combined with 7% gross revenue floor creates unpredictable cost structure
  6. 06HIGHGoing Concern marked FALSE is atypical for healthy franchise systems and may indicate franchisor financial instability
  7. 07MINORHigh franchise fee ($63,000) relative to system size and growth rate increases breakeven burden

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.