B55/100FDD 2025
Creative Colors International — 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
55 / 100
FranchiseVerdict composite
Rating
MODERATE
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
9
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
Total loan volume
$1.5M
Avg loan size
$168K
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
Illinois
State whose law governs disputes — relevant if you're not based there
What drove the 55/100 rating
Risk Score Breakdown
- 01MEDNo Item 19 financial disclosure despite $367k average revenue claim — cannot verify profitability or validate the gap between gross revenue and undisclosed net income
- 02HIGHGoing Concern status is FALSE — suggests franchisor financial instability or operational uncertainty that could affect support and system viability
- 03MINORHigh franchise fee ($59,500) combined with total investment of $101-123k creates significant sunk cost before generating revenue
- 04MINORUnit count stagnation at 73 with unknown growth trajectory — no evidence of system expansion or franchisee success driving recruitment
- 05MINOR7.5% royalty on gross sales (not net) means franchisees pay even during unprofitable months, exacerbating cash flow risk
- 06MINORProtected territory is positive but cannot offset lack of financial transparency and franchisor stability concerns
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.