B62/100FDD 2025
Coast Supply Co. — Litigation & Risk
Home Services - Other · FDD Items 3, 4 & 5
Lower Risk
No litigation cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
62 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID
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
California
State whose law governs disputes — relevant if you're not based there
What drove the 62/100 rating
Risk Score Breakdown
- 01MINOROnly 2 units in entire system indicates minimal franchise success and unproven scalability
- 02MEDNet income not disclosed despite $1.9M average revenue — suggests poor profitability or disclosure avoidance
- 03HIGHGoing Concern status is FALSE — indicates potential franchisor financial instability or legal/operational issues
- 04MINORUnknown unit growth trajectory with only 2 units suggests stagnation or recent contraction
- 05MINORHigh initial investment ($213.5K-$365.5K) relative to tiny system size creates disproportionate risk
- 06MINOR6% royalty on weekly gross (not net) means ongoing fees regardless of profitability
- 07MINORMinimal disclosure in FDD (Item 19 financials absent) prevents accurate ROI modeling
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.