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B67/100FDD 2023

DumpStor — Litigation & Risk

Other · 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
67 / 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
Virginia
State whose law governs disputes — relevant if you're not based there

What drove the 67/100 rating

Risk Score Breakdown

  1. 01MINOROnly 6 units in system with unknown growth trajectory indicates minimal scale and potential stagnation
  2. 02MINORNo average net income disclosure (Item 19) prevents realistic ROI analysis and suggests weak franchisee profitability
  3. 03MINORComplex tiered royalty structure ($49.50/week per truck + $19.50/week per container up to 50, then $15/container) creates variable cost unpredictability
  4. 04MINORHigh initial investment range ($112,750–$458,950) relative to only 6 units suggests inconsistent startup costs or territory-dependent pricing
  5. 05HIGHGoing Concern status is FALSE — critical red flag indicating potential franchisor financial instability or operational uncertainty
  6. 06MEDFranchise fee ($49,950) is substantial for a 6-unit system with no disclosed unit growth or brand recognition

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.