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B65/100FDD 2025

Devon Creek Landscaping — Litigation & Risk

Home Services - Lawn & Landscaping · FDD Items 3, 4 & 5

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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
65 / 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
North Carolina
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 franchise unit operating — system shows no growth and raises questions about viability and scalability
  2. 02MEDNo Item 19 financial performance data (Average Revenue and Net Income not disclosed) — impossible to validate ROI or earnings claims
  3. 03MINORTiered royalty structure with 6% base rate is above industry standard (typical 5-6%) and lacks transparency on 'minimum annual royalty' threshold
  4. 04MEDHigh initial investment range ($97K-$220K) combined with undisclosed financials creates significant uncertainty on payback period
  5. 05HIGHGoing Concern status listed as 'False' — suggests potential financial instability or uncertainty about franchisor's long-term viability
  6. 06MINORSingle operating unit may indicate the franchisor is pre-revenue or in early testing phase with unproven business model

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.