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D72/100FDD 2026
Handyman Connection — Litigation & Risk
Food & Beverage - Quick Service · FDD Items 3, 4 & 5
Lower Risk
No litigation cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
0
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
43
Government-backed loans issued
Default rate
24.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
6 loans
Loans charged off or defaulted
Total loan volume
$7.1M
Avg loan size
$165K
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
3 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
Ohio
State whose law governs disputes — relevant if you're not based there
What drove the 72/100 rating
Risk Score Breakdown
- 01MEDNo Item 19 financial disclosure (avg net income not disclosed) — cannot verify profitability claims
- 02MEDSmall unit base of 65 locations with unknown growth trajectory suggests limited system momentum
- 03MINORUnprotected territory creates direct competition risk; franchisees may cannibalize each other's revenue
- 04MEDHigh initial investment ($115k-$239k) relative to disclosed average revenue ($575k) without net income transparency
- 05MINOR10-year term with 6% royalty on gross (not net) creates ongoing cost burden even in unprofitable years
- 06HIGHGoing Concern status is FALSE — indicates potential franchisor financial instability or disclosure issues
- 07HIGHNo litigation disclosed is a positive, but combined with other factors suggests weak franchisee advocacy/awareness
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.