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F83/100FDD 2025

Garage Living — Litigation & Risk

Home Services - Other · FDD Items 3, 4 & 5

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Moderate — Review

2 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
83 / 100
FranchiseVerdict composite
Rating
AVOID
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
15
Government-backed loans issued
Default rate
50.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$4.3M
Avg loan size
$285K
Participating lenders
6

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

What drove the 83/100 rating

Risk Score Breakdown

  1. 01MINORUnit count declining 2.0% YoY (51 units) indicates shrinking system momentum despite $1.6M average revenue
  2. 02MEDNo disclosed average net income makes ROI calculation impossible; cannot verify $121.5K-$321.6K investment justifies 5-year term
  3. 03HIGHActive litigation by franchisor against former franchisees over post-term covenants suggests enforcement disputes and potential franchisee dissatisfaction
  4. 04MINORDual royalty structure ($2K/month secondary markets) lacks transparency on which territories qualify and expected franchisee volume
  5. 05MEDHigh franchise fee ($60K) + investment range ($121.5K-$321.6K) combined with unit decline raises sustainability concerns

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.