FranchiseVerdict
Generator Supercenter logo
B61/100FDD 2026

Generator Supercenter — Litigation & Risk

Retail · FDD Items 3, 4 & 5

Back to overview

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
61 / 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
27
Government-backed loans issued
Default rate
16.7%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$13.5M
Avg loan size
$500K
Participating lenders
15

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 61/100 rating

Risk Score Breakdown

  1. 01MINORUnit count declining 11.5% YoY (65 units) indicates system contraction and potential franchisee dissatisfaction
  2. 02MINORNo Item 19 (Average Unit Volume) disclosure despite $4.6M average revenue suggests franchisor hiding profitability data
  3. 03HIGHActive litigation for breach of franchise agreements and trade secret misappropriation signals operational/legal conflicts
  4. 04MINORPrior settled trademark/unfair competition case indicates history of disputes with franchisees
  5. 05MEDHigh royalty burden (4-6% + $2,000 minimum monthly) on undisclosed net income creates cash flow uncertainty
  6. 06MEDInvestment range of $504K-$898K is substantial with no disclosed average unit profitability to justify ROI
  7. 07HIGH'Going Concern' marked false suggests potential financial instability in franchisor operations

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.