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D72/100FDD 2023

Disaster Blaster — Litigation & Risk

Cleaning - Commercial & Janitorial · 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
72 / 100
FranchiseVerdict composite
Rating
CAUTION
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
Delaware
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 operating unit with unknown growth trajectory suggests a nascent or stalled system with no proven scalability
  2. 02MINORNo net income disclosure prevents ROI validation; average revenue of $537,573 may not support $136K-$297K investment payback
  3. 03MEDTiered royalty structure (3-6%) plus undisclosed minimum monthly requirements creates unpredictable cost burden, especially problematic with single-unit data
  4. 04MINORNo protected territory exposes franchisees to direct competition from franchisor or other franchisees in same market
  5. 05MINOR5-year term is short for capital recovery in disaster restoration/construction services requiring client relationship building
  6. 06MINORFranchise fee of $47,500 represents 35% of minimum investment with unclear training, support, and ongoing services
  7. 07HIGHGoing Concern = False indicates potential franchisor financial instability or restructuring risk
  8. 08MINORSingle unit data point makes all averages and projections statistically meaningless for franchise system validation

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.