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D72/100FDD 2026

Gotcha Covered — Litigation & Risk

Home Services - Other · 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
72 / 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
55
Government-backed loans issued
Default rate
31.8%
vs <3% typical · system-wide
5-yr default rate
25.0%
Defaults
7 loans
Loans charged off or defaulted
Total loan volume
$7.0M
Avg loan size
$126K
Participating lenders
19

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

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MEDNo average net income disclosed despite $580k avg revenue — profitability opaque
  2. 02MINORMinimal system growth (1.8% YoY) with only 172 units suggests market saturation or unit underperformance
  3. 03MINORUnprotected territory creates direct competition risk within service area
  4. 04HIGHRecent litigation (Oct 2025) for breach and customer deposit non-refund indicates franchisee financial distress and operational compliance issues
  5. 05MINORFixed royalty structure ($350-$2,250/month) may not scale fairly with seasonal revenue fluctuations typical in window coverings

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.