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A59/100FDD 2025

Go Painting — Litigation & Risk

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

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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
59 / 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
1
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$150K
Avg loan size
$150K
Participating lenders
1

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

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
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
Utah
State whose law governs disputes — relevant if you're not based there

What drove the 59/100 rating

Risk Score Breakdown

  1. 01HIGHFLSA litigation settlement ($3.67M) indicates potential wage/labor compliance issues that may affect franchisee operations and liability exposure
  2. 02MINORNo net income disclosure (Item 19) prevents validation of actual profitability claims; average revenue of $668k may not translate to acceptable franchisee earnings after 7% royalty, operating costs, and labor
  3. 03MINOROnly 24 units with unknown growth trajectory suggests stagnant or declining system; insufficient scale to validate business model replicability
  4. 04MINORHigh initial investment ($128.7k-$172.2k) combined with $59.5k franchise fee ($188.2k-$231.7k total) and no profitability transparency creates significant downside risk
  5. 05HIGHLitigation history tied to Unforgettable Coatings (related entity) raises questions about corporate governance, compliance culture, and ongoing labor practice vulnerabilities

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.