AStrongest tier81/100FDD 2025
Dreammaker Bath & Kitchen: Litigation & Risk
Home Services · 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)
- None
- Franchisor or officer bankruptcy
- Verdict score
- 81 / 100
- FranchiseVerdict composite · higher is better
- Rating
- A
- A / B / C / D / F verdict grade
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Charge-off rate is the share of loans that were charged off or settled for less than the full balance.
- Total 7(a) loans
- 1
- Government-backed loans issued
- Charge-off rate
- N/A
- vs 16% franchise average
- 5-yr charge-off rate
- N/A
- Defaults
- N/A
- Loans charged off or defaulted
- Total loan volume
- $108K
- Avg loan size
- $108K
- Participating lenders
- 1
FDD Items 5, 6 & 17: What You Give Up
Contract Risk Indicators
- Mandatory arbitration
- Not required
- You retain the right to sue in court
- Jury trial waiver
- Not waived
- Non-compete
- 2 yrs
- Post-termination restriction on similar businesses
- Franchisor can compete
- No
- Right of first refusal
- Yes
- Franchisor can match any purchase offer when you try to sell
- Governing law
- TX
- State whose law governs disputes. Relevant if you're not based there
Extracted from FDD Item 3
Litigation Detail
No litigation required to be disclosed in Item 3.
What drove the 81/100 verdict
Risk Score Breakdown
- 01MEDNet income not disclosed in Item 19 — cannot assess actual profitability despite $1.47M average revenue
- 02MINORMinimal system growth at 2.4% YoY with only 43 units suggests market saturation or franchisee dissatisfaction
- 03MEDHigh initial investment range ($235K-$507K) paired with undisclosed profitability creates ROI uncertainty
- 04MINORDeclining royalty structure (7% to 3%) indicates franchisor may be struggling to retain units or justify ongoing support
- 05MINOR10-year term is longer than industry standard (5-7 years), locking franchisees into potentially unfavorable economics
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.