FranchiseVerdict
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D68/100FDD 2026

Fibrenew — 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
68 / 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
49
Government-backed loans issued
Default rate
22.2%
vs <3% typical · system-wide
5-yr default rate
50.0%
Defaults
4 loans
Loans charged off or defaulted
Total loan volume
$6.1M
Avg loan size
$124K
Participating lenders
14

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
1.5 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
Alberta
State whose law governs disputes — relevant if you're not based there

What drove the 68/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 (Average Revenue/Net Income) disclosed — impossible to assess ROI or payback period on $102k-$122k investment
  2. 02MEDAnemic unit growth of 4.9% YoY suggests market saturation or franchisee struggles; 237 units is small system with limited brand recognition
  3. 03MINORHigh franchise fee ($47,000) relative to total investment (46%) creates significant upfront cost with no guaranteed revenue transparency
  4. 04HIGHGoing Concern status is False — indicates potential financial distress at franchisor level, raising questions about support and longevity
  5. 05MEDFixed monthly royalty of $795 regardless of revenue creates cash flow risk during slow months; no incentive structure disclosed

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.