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B61/100FDD 2025

Gorilla Property Services® — Litigation & Risk

Real Estate · FDD Items 3, 4 & 5

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Lower Risk

No litigation cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
0
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

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
3 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
British Columbia, Canada
State whose law governs disputes — relevant if you're not based there

What drove the 61/100 rating

Risk Score Breakdown

  1. 01MEDOnly 1 unit disclosed with unknown growth trajectory — impossible to validate system viability or scalability
  2. 02MINORNo Item 19 financial performance representations — cannot verify if $313k average revenue and $180k net income are typical or outliers
  3. 03HIGHGoing Concern status is FALSE — suggests potential financial instability or uncertainty about franchisor's long-term viability
  4. 04MINORHigh franchise fee ($49,500) relative to single operating unit creates validation concerns
  5. 05MINORRoyalty structure includes $500 minimum even at startup — meaningful burden before reaching profitability threshold
  6. 06MINOR5-year term is shorter than industry standard (10 years typical) — may indicate franchisor risk mitigation rather than partner confidence

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.