FranchiseVerdict
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D74/100FDD 2025

College Hunks Hauling Junk & Moving — Litigation & Risk

Other · FDD Items 3, 4 & 5

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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
74 / 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
165
Government-backed loans issued
Default rate
27.6%
vs <3% typical · system-wide
5-yr default rate
35.3%
Defaults
16 loans
Loans charged off or defaulted
Total loan volume
$38.3M
Avg loan size
$232K
Participating lenders
37

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
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
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 74/100 rating

Risk Score Breakdown

  1. 01MEDUnit count declined 7.9% year-over-year (190 units), indicating system contraction and potential franchisee dissatisfaction
  2. 02HIGHGoing Concern status is FALSE, suggesting franchisor financial viability concerns or accounting issues
  3. 03HIGHActive litigation involving breach of contract, trademark infringement, and non-compete violations indicates enforcement problems and franchisor-franchisee relationship strain
  4. 04MINORNet income of $60,031 on $1.46M average revenue (4.1% net margin) is razor-thin; 7% royalty leaves minimal profit cushion
  5. 05MINORHigh initial investment ($158K–$355K) combined with thin margins creates extended break-even period and elevated failure risk
  6. 06MINORRoyalty burden (7% of gross sales) is aggressive given the service industry's typical operating expenses for labor-intensive junk hauling/moving

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.