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D72/100FDD 2025

Environment Control Building Maintenance Company — 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
72 / 100
FranchiseVerdict composite
Rating
CAUTION
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
5
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

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
5 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
State where franchise is located
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01HIGHGoing concern warning indicates potential franchisor financial distress or operational viability questions
  2. 02MINORMinimal unit growth (1.9% YoY) across 55 units suggests stagnant or struggling system expansion
  3. 03MINORExtremely aggressive royalty structure (50% of first $12k quarterly profits) creates unsustainable payment burden on franchisees
  4. 04MINORAverage net income of $170k appears inconsistent with typical building maintenance margins and lacks supporting revenue disclosure
  5. 05MINORUnknown franchise term length prevents assessment of long-term commitment and renewal risk
  6. 06MINORDisclosure gap: no average revenue provided despite high profitability claims raises transparency concerns
  7. 07MINORHigh initial investment ($115.5k) paired with minimal system growth suggests poor unit economics or recruiting challenges

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.