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A50/100FDD 2025

Budget Blinds — Litigation & Risk

Home Services - Other · FDD Items 3, 4 & 5

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Moderate — Review

2 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
50 / 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
366
Government-backed loans issued
Default rate
14.4%
vs <3% typical · system-wide
5-yr default rate
3.6%
Defaults
29 loans
Loans charged off or defaulted
Total loan volume
$114.3M
Avg loan size
$312K
Participating lenders
102

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 50/100 rating

Risk Score Breakdown

  1. 01MEDNet income not disclosed in FDD Item 19 — unable to validate profitability claims against $853,650 average revenue
  2. 02MINORStagnant unit growth (0.3% YoY) suggests market saturation or franchisee dissatisfaction in mature 1,366-unit system
  3. 03MINORTiered royalty structure with fixed fees ($1,250–$2,500/mo) creates burden for lower-revenue locations; breakeven analysis unclear
  4. 04HIGHActive litigation including franchisor collection suit against franchisee (GTHI, LLC) indicates payment/compliance disputes
  5. 05MINORHigh initial investment range ($100,500–$211,250) combined with lack of Item 19 net income data prevents ROI validation
  6. 06MINORProtected territory offers competitive advantage but does not offset opaque profitability metrics

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.