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A52/100FDD 2025

Drymedic — 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
52 / 100
FranchiseVerdict composite
Rating
STRONG
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
Maryland
State whose law governs disputes — relevant if you're not based there

What drove the 52/100 rating

Risk Score Breakdown

  1. 01MEDNet income not disclosed in FDD Item 19 — impossible to verify $717,860 avg revenue translates to viable unit economics
  2. 02MINORExplosive 55.8% YoY unit growth (likely from low base of ~57 units) suggests aggressive recruitment; high churn risk in immature system
  3. 03MINORTiered royalty structure (7%→6%→5% + 3% reconstruction) with $900-$2,625/mo minimum creates complexity; franchisees earning <$150k annually may struggle with profitability
  4. 04MEDHigh initial investment ($196k–$319k) relative to disclosed average revenue ($717k) implies 3-4 year payback before accounting for operating expenses
  5. 05HIGHGoing Concern flag is FALSE but lack of Item 19 profitability data prevents stress-testing unit viability through economic downturns

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.