FranchiseVerdict
DuraFleet logo
B60/100FDD 2025

DuraFleet — Litigation & Risk

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

Back to overview

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
60 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

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

What drove the 60/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 unit in system with unknown growth trajectory — impossible to validate scalability or system viability
  2. 02MINORUnprotected territory creates direct competition risk; franchisor can license competitors in your service area
  3. 03MINORRoyalty structure (8% on first $500k) is aggressive relative to 36% average net margin; combined with other fees, profitability compression likely
  4. 04HIGHNo disclosed litigation but single-unit system limits track record; cannot assess franchisee satisfaction or dispute patterns
  5. 05MINORItem 19 financial performance based on only 1 franchisee — statistically meaningless; $1.14M revenue is unverifiable sample size

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.