B67/100FDD 2022
Frost Shades — Litigation & Risk
Home Services - Other · FDD Items 3, 4 & 5
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
67 / 100
FranchiseVerdict composite
Rating
MODERATE
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
Tennessee
State whose law governs disputes — relevant if you're not based there
What drove the 67/100 rating
Risk Score Breakdown
- 01MEDNo Item 19 financial performance data (avg revenue/net income) disclosed — impossible to validate ROI claims
- 02MINORExtreme unit growth of 260% YoY is unsustainable and suggests either aggressive recruitment or system instability
- 03HIGHGoing Concern status is FALSE, indicating potential franchisor financial distress or operational uncertainty
- 04MINORRoyalty structure with 'greater of 7% or minimum monthly fee' is opaque — actual franchisee burden unclear without knowing the minimum
- 05MEDOnly 19 units total — very small, immature system with limited track record and franchisee reference pool
- 06MINORWide investment range ($55.5K–$119.2K) suggests unclear cost structure and potential hidden expenses
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.