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A45/100FDD 2025

GarageExperts — Litigation & Risk

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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
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
12
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$4.3M
Avg loan size
$356K
Participating lenders
10

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

What drove the 45/100 rating

Risk Score Breakdown

  1. 01HIGHActive litigation (2024) involving fraud, conversion, tortious interference, and civil conspiracy claims raises governance and operational integrity concerns
  2. 02MEDNet income not disclosed in FDD Item 19 prevents validation of the $632,445 average revenue claim and makes ROI analysis impossible
  3. 03MINORUnknown unit growth trajectory with 104 units makes it impossible to assess whether the franchise is expanding, stagnating, or contracting
  4. 04MEDHigh initial investment range ($93,600–$226,000) combined with 6% royalty on gross sales creates significant financial risk without disclosed profitability data
  5. 05HIGHGoing Concern status is False, suggesting potential franchisor financial instability or operational challenges
  6. 06HIGHLitigation involves allegations against multiple defendants including apparent franchisor representatives, indicating systemic rather than isolated disputes

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.