FranchiseVerdict
FUSE Service logo
A45/100FDD 2025

FUSE Service — Litigation & Risk

Home Services - Plumbing & HVAC · FDD Items 3, 4 & 5

Back to overview

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
45 / 100
FranchiseVerdict composite
Rating
STRONG
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
2
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
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
California
State whose law governs disputes — relevant if you're not based there

What drove the 45/100 rating

Risk Score Breakdown

  1. 01MINORNo net income disclosure (Item 19) prevents accurate ROI assessment and profitability validation
  2. 02MINORUnprotected territory creates direct competition risk and cannibalization with other franchisees
  3. 03MINORRapid unit growth of 112.5% YoY is unsustainable and may indicate aggressive recruitment over retention
  4. 04MINORAverage revenue of $553,641 falls only slightly above the 3% royalty threshold, limiting margin flexibility
  5. 05MINORTiered royalty structure incentivizes growth but penalizes mid-range performers disproportionately
  6. 06HIGHNo litigation disclosure doesn't guarantee system health; emerging brand with limited track record

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.