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F80/100FDD 2023

Computer Troubleshooters — Litigation & Risk

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

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Elevated Risk

29 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
29
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
80 / 100
FranchiseVerdict composite
Rating
AVOID
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
6
Government-backed loans issued
Default rate
66.7%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
4 loans
Loans charged off or defaulted
Total loan volume
$178K
Avg loan size
$30K
Participating lenders
5

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

What drove the 80/100 rating

Risk Score Breakdown

  1. 01MINORSystem declining 10.6% YoY with only 111 units remaining — suggests erosion of franchisee profitability or satisfaction
  2. 02HIGHActive litigation: putative class action + 28 arbitration demands alleging breach of contract and statutory violations — indicates systemic franchisor disputes
  3. 03MEDNo Item 19 (Average Unit Volume) disclosed — prevents assessment of actual franchisee earnings potential and return on $19.5k-$45k investment
  4. 04MINORRoyalty structure ($300-$750/month) creates high burden on low-margin service business; unclear if sustainable at declining unit count
  5. 05MINORLow initial investment ($19.5k-$45k) combined with declining units suggests either commoditized service or failed unit economics
  6. 06MED10-year term with no disclosed renewal rates or franchisee retention data — standard red flag in declining franchise systems

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.