FranchiseVerdict
City Wide Facility Solutions logo
A35/100FDD 2025

City Wide Facility Solutions — 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
35 / 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
56
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
Required
Disputes resolved outside court — limits your legal options
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
Kansas
State whose law governs disputes — relevant if you're not based there

What drove the 35/100 rating

Risk Score Breakdown

  1. 01MINORNo net income disclosure despite $8.9M average revenue — inability or unwillingness to show profitability is a major transparency concern
  2. 02MINORSlow unit growth of 4.3% YoY suggests market saturation, franchisee struggles, or weak brand momentum in a mature 98-unit system
  3. 03HIGHLitigation history (breach of contract and renewal dispute with Dauntless Enterprises) indicates franchisee-franchisor relationship friction and potential contract interpretation issues
  4. 04MEDMinimum royalty fee structure without disclosed threshold — could create cash flow burden for new/underperforming locations with unclear break-even point
  5. 05MEDHigh initial investment ($226K-$393K) relative to disclosed average revenue per unit (~$91K) creates multi-year payback pressure

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.