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A50/100FDD 2026

Dryer Vent Wizard — Litigation & Risk

Cleaning - Commercial & Janitorial · FDD Items 3, 4 & 5

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Moderate — Review

2 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
50 / 100
FranchiseVerdict composite
Rating
STRONG
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
49
Government-backed loans issued
Default rate
10.0%
vs <3% typical · system-wide
5-yr default rate
20.0%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$7.7M
Avg loan size
$157K
Participating lenders
11

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
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
Texas
State whose law governs disputes — relevant if you're not based there

What drove the 50/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 (Average Unit Volume) disclosed despite $240k avg revenue claim — cannot verify profitability or validate royalty burden
  2. 02MINORRoyalty structure (10% or minimum fee) is punitive; at $240k revenue, 10% royalty ($24k) plus operating costs may severely compress margins
  3. 03HIGHParent company litigation history (Window Genie, Molly Maid) signals compliance culture issues and regulatory attention across portfolio
  4. 04MINOR12.2% YoY growth is modest for a service franchise in expanding market; does not indicate runaway demand
  5. 05MEDHigh initial investment ($82.9k–$159.4k) relative to disclosed revenue with unknown net income creates payback risk

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.