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A47/100FDD 2025

Heroes Lawn Care — Litigation & Risk

Home Services - Lawn & Landscaping · FDD Items 3, 4 & 5

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Moderate — Review

2 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
47 / 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
39
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$12.3M
Avg loan size
$316K
Participating lenders
5

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 47/100 rating

Risk Score Breakdown

  1. 01MEDDeclining unit count (-3.1% YoY) with only 63 locations suggests system contraction and potential maturity/decline
  2. 02HIGHTwo pending federal litigation cases alleging fraudulent misrepresentation and fraud in the inducement create material legal and reputational risk
  3. 03MEDNet income not disclosed in FDD despite $510k average revenue — unable to validate actual profitability claims or ROI
  4. 04HIGHGoing concern status indicates franchisor financial instability or operational uncertainty
  5. 05MINORRoyalty structure jumps significantly in Year 3+ (6.5% of gross or $500/mo minimum) with no cap, potentially squeezing margins
  6. 06MINORHigh franchise fee ($59,500) combined with startup costs ($159k-$215k total) creates substantial sunk cost with declining franchise population

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.