AStrongest tier60/100FDD 2025
Groovy Hues Peace Love Paint Powerwash: Litigation & Risk
Home Services · FDD Items 3, 4 & 5
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)
- None
- Franchisor or officer bankruptcy
- Verdict score
- 60 / 100
- FranchiseVerdict composite · higher is better
- Rating
- A
- A / B / C / D / F verdict grade
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
- Not waived
- 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
- PA
- State whose law governs disputes. Relevant if you're not based there
Extracted from FDD Item 3
Litigation Detail
Beutler Holdings LLC and Zachery Beutler filed arbitration demand (Dec 8, 2025) against Joshua Skolnick, Skolnick Holdings LLC, and JEZ Investments LLC (parent of franchisor) regarding governance and ownership disputes. Franchisor itself is not a party.
What drove the 60/100 verdict
Risk Score Breakdown
- 01HIGHGoing Concern status is FALSE — franchisor may face existential financial/operational challenges
- 02HIGHActive litigation involving parent company ownership and governance creates uncertainty about franchisor stability and decision-making authority
- 03MEDNet Income not disclosed in FDD Item 19 — impossible to assess actual profitability despite $1.1M average revenue claim
- 04MINORTiered royalty structure with $500/month minimum may create cash flow pressure for franchisees in early/slower periods
- 05HIGHRapid unit growth (35.3% YoY) with litigation simultaneously suggests potential quality control issues or franchisee dissatisfaction being masked
- 06MINORHigh franchise fee ($59,500) combined with investment range ($157.5K-$204.5K) limits margin for error in startup phase
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.