FranchiseVerdict
Helpful Heroes logo
D72/100FDD 2026

Helpful Heroes — Litigation & Risk

Home Services - Other · FDD Items 3, 4 & 5

Back to overview

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

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
1.5 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
Michigan
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MINOROnly 2 units in system with unknown growth trajectory indicates severely underdeveloped franchise with minimal track record
  2. 02MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI validation and suggests weak financial performance
  3. 03HIGHGoing Concern status is FALSE, indicating potential solvency or operational stability issues at franchisor level
  4. 04MINORHigh franchise fee ($49,999) relative to system size and lack of financial disclosure creates significant risk for franchisee
  5. 05MED5-year term is shorter than industry standard (10 years typical), suggesting limited franchisor commitment or protections
  6. 06MINORRoyalty range of 5-8% is vague and undefined, creating uncertainty around actual operating costs

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.