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D74/100FDD 2024

Glass Doctor — Litigation & Risk

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

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Moderate — Review

3 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
3
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
74 / 100
FranchiseVerdict composite
Rating
CAUTION
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
100
Government-backed loans issued
Default rate
32.8%
vs <3% typical · system-wide
5-yr default rate
33.3%
Defaults
20 loans
Loans charged off or defaulted
Total loan volume
$21.5M
Avg loan size
$215K
Participating lenders
50

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
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 74/100 rating

Risk Score Breakdown

  1. 01MINORStagnant unit growth (1.9% YoY) suggests market saturation or franchisee struggles in a mature 165-unit system
  2. 02MEDNo disclosed net income data prevents ROI validation; combined with $152,900-$317,100 investment, payback period is unverifiable
  3. 03HIGHLitigation history includes territory/licensing misrepresentation settlement ($125,000) and affiliate regulatory violations indicating compliance issues within parent company ecosystem
  4. 04MEDRoyalty range (4-7%) is moderate-to-high against undisclosed profitability; unclear what drives variance or triggers upper tier
  5. 05MEDHigh franchise fee ($59,900) represents 39-59% of minimum investment, leaving limited working capital for a service-based business requiring equipment/inventory

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.