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B65/100FDD 2025

Green Motion — 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 systemwide indicates extremely small, unproven franchise system with minimal scale and support infrastructure
  2. 02MEDNo disclosed average revenue or net income (Item 19 data absent) prevents realistic ROI modeling on $167,900–$1,547,250 investment range
  3. 03HIGHActive litigation alleging Ontario franchise law violations by parent company Green Motion Limited creates legal and reputational risk despite claimed discontinuation
  4. 04HIGHGoing Concern status 'False' is ambiguous—unclear if this means no going concern issues or if going concern issues exist
  5. 05MINORRoyalty structure with $500–$1,500 monthly minimums creates fixed cost floor regardless of revenue, problematic for struggling locations
  6. 06MINOR10-year term is long relative to system maturity and unproven unit economics

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.