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D75/100FDD 2025

Family Nest™ — Litigation & Risk

Home Services - 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
75 / 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
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
Georgia
State whose law governs disputes — relevant if you're not based there

What drove the 75/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern issue indicates financial instability at franchisor level
  2. 02MINOROnly 5 units operating with unknown/likely stagnant growth trajectory
  3. 03MINORNo average revenue or net income disclosure prevents ROI validation
  4. 04MINORUnprotected territory creates direct competition risk from other franchisees
  5. 05MINORHigh initial investment ($55k-$118k) relative to system size suggests poor unit economics
  6. 06MINORAmbiguous royalty structure (4% or minimum fee) lacks transparency on actual monthly obligations
  7. 07MINOR5-year term is shorter than industry standard, creating renewal uncertainty

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.