FranchiseVerdict
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A41/100FDD 2025

Groovy Hues Peace Love Paint Powerwash — Litigation & Risk

Home Services - Painting · 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
41 / 100
FranchiseVerdict composite
Rating
STRONG
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
78
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

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

What drove the 41/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status is FALSE — franchisor may face existential financial/operational challenges
  2. 02HIGHActive litigation involving parent company ownership and governance creates uncertainty about franchisor stability and decision-making authority
  3. 03MEDNet Income not disclosed in FDD Item 19 — impossible to assess actual profitability despite $1.1M average revenue claim
  4. 04MINORTiered royalty structure with $500/month minimum may create cash flow pressure for franchisees in early/slower periods
  5. 05HIGHRapid unit growth (35.3% YoY) with litigation simultaneously suggests potential quality control issues or franchisee dissatisfaction being masked
  6. 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.