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B62/100FDD 2024

Dryer Vent Squad — Litigation & Risk

Home Services - Other · FDD Items 3, 4 & 5

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Elevated Risk

18 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
18
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
62 / 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
New Jersey
State whose law governs disputes — relevant if you're not based there

What drove the 62/100 rating

Risk Score Breakdown

  1. 01HIGHExtensive litigation history including multiple franchisee fraud/misrepresentation lawsuits against predecessor entities (Patch Boys, Frost Shades, Clozetivity) and ongoing disputes with former partner Thomas Scott
  2. 02MEDNo Item 19 (average unit volumes) disclosed — cannot verify if $153,651 average revenue claim is accurate or representative; net income completely undisclosed
  3. 03MEDAdministrative consent orders and state agency investigations in Maryland, Minnesota, and New York for registration violations and disclosure omissions indicate compliance issues
  4. 04HIGHFranchisor does not have 'Going Concern' status — suggests financial instability or accounting/operational red flags
  5. 05MEDHigh royalty structure (greater of 7% or $600-$1,700/month minimum) combined with undisclosed profitability makes ROI analysis impossible
  6. 06MINOR64.3% YoY unit growth appears strong but from small base (46 units); may mask high failure rate or is growth-through-acquisition of struggling systems

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.