A29/100FDD 2025
Ideal Siding — Litigation & Risk
Home Services - Other · 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)
—
Franchisor or officer bankruptcy
Overall risk score
29 / 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
1
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$210K
Avg loan size
$210K
Participating lenders
1
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
Delaware
State whose law governs disputes — relevant if you're not based there
What drove the 29/100 rating
Risk Score Breakdown
- 01MINORSecurities compliance violation in Washington (2022) indicates regulatory oversight gaps and potential franchisee protection issues in other states
- 02MINORRoyalty structure with undefined 'Minimum Royalty' starting month 7 lacks transparency—actual costs to franchisees unclear
- 03MINOR144% YoY unit growth is unsustainably high and suggests aggressive recruitment over retention; typical healthy growth is 10-20% YoY
- 04MINORAverage net income of $232K on $950K revenue (24.4% margin) appears inflated—likely skewed by top performers; median data not provided
- 05MINORNo Item 19 (financial performance representations) available—franchisor provides no substantiated earnings claims to validate FDD averages
- 06MED44-unit system is small; limited franchisee network for due diligence and higher franchisor dependency risk
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.