B56/100FDD 2026
CORE Group Restoration — Litigation & Risk
Cleaning - Commercial & Janitorial · 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
56 / 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
Texas
State whose law governs disputes — relevant if you're not based there
What drove the 56/100 rating
Risk Score Breakdown
- 01MEDNo average revenue or net income disclosed in FDD Item 19 — impossible to validate ROI on $56k-$373k investment
- 02MINORWide investment range ($317k spread) suggests inconsistent unit economics or vastly different territory models
- 03MINORUnprotected territory creates direct competition risk and potential cannibalization within the 71-unit system
- 04MINORVariable royalty structure (2-10%) is unusual and suggests performance-based or tiered model — unclear earning thresholds
- 05MINORZero franchise fee is atypical and may indicate weak brand demand, recent pivot, or aggressive growth-at-any-cost strategy
- 06HIGHGoing Concern status = False is ambiguous — need clarification if franchisor has solvency concerns
- 07MINOR16.4% YoY unit growth with only 71 units is modest and concerning given zero franchise fee barrier to entry
- 08HIGHNo litigation disclosed but unprotected territories and royalty ambiguity create dispute risk
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.