FranchiseVerdict
EarthWise Pet / GROOMBAR logo
D70/100FDD 2025

EarthWise Pet / GROOMBAR — Litigation & Risk

Personal Services - Pet Care · 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
70 / 100
FranchiseVerdict composite
Rating
CAUTION
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
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
Washington
State whose law governs disputes — relevant if you're not based there

What drove the 70/100 rating

Risk Score Breakdown

  1. 01MEDSevere unit decline of 28.7% YoY indicates systemic problems or mass attrition (165 units down from ~231)
  2. 02MEDNo Item 19 (Financial Performance Representations) disclosed — cannot validate claimed $246,947 avg net income or $545,417 revenue
  3. 03MINORHigh initial investment ($288K-$863K) combined with declining franchise base creates survivorship risk
  4. 04MED5% royalty on gross revenue with no disclosed Item 19 means earnings claims are unverifiable and potentially misleading
  5. 05MINORFranchise fee ($45K) is non-refundable while system contracts; high ratio of franchisees leaving suggests poor unit economics
  6. 06HIGHGoing Concern status = 'False' is ambiguous; requires clarification on franchisor financial health and runway

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.