FranchiseVerdict
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B65/100FDD 2025

Green Motion Car and Van Rental — Litigation & Risk

Automotive - Repair & Service · 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
65 / 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
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
Mississippi
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MINOROnly 6 units in system with unknown growth trajectory suggests weak franchisee recruitment and retention
  2. 02MINORNo average revenue or net income disclosure (no Item 19 equivalent) prevents ROI validation and raises transparency concerns
  3. 03HIGHActive litigation involving parent company Green Motion Limited over franchise disclosure law violations indicates regulatory and operational risk
  4. 04MINORWide investment range ($167,900–$1,547,250) without corresponding revenue disclosure makes underperformance risk impossible to assess
  5. 05MINOR6% royalty on gross revenue (not net) combined with $1,500+ monthly minimums creates cash flow pressure for struggling locations
  6. 06MINOR10-year term is lengthy given company's small footprint and unproven franchisee success model

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.