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B55/100FDD 2024

Filta Environmental Kitchen Solutions — Litigation & Risk

Food & Beverage - Full Service · FDD Items 3, 4 & 5

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
55 / 100
FranchiseVerdict composite
Rating
MODERATE
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
15.4%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
4 loans
Loans charged off or defaulted
Total loan volume
$10.3M
Avg loan size
$210K
Participating lenders
17

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

What drove the 55/100 rating

Risk Score Breakdown

  1. 01MEDNet income not disclosed in Item 19 — unable to validate actual profitability claims against $910k average revenue
  2. 02MINORSlow unit growth (4.4% YoY) suggests market saturation or franchisee satisfaction issues in a 355-unit system
  3. 03HIGHLitigation history involving franchisee exit disputes and TCPA violations raises concerns about contract enforcement and franchisor conduct
  4. 04MINORHigh initial investment ($123.6k-$139.25k) combined with declining royalty floor ($650/month minimum) suggests tight unit economics
  5. 05MINORRoyalty structure creates ambiguity — franchisees paying either declining % or $650 minimum means low-revenue locations subsidize franchisor

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.