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D76/100FDD 2023
Innovative Roof Solutions — Litigation & Risk
Home Services - Other · 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
76 / 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
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
Wisconsin
State whose law governs disputes — relevant if you're not based there
What drove the 76/100 rating
Risk Score Breakdown
- 01HIGHGoing Concern status is FALSE — franchisor may face viability/solvency issues
- 02MINOROnly 1 unit in entire system — no proven scalability or franchisee success track record
- 03MEDAverage Revenue and Net Income not disclosed — unable to validate ROI claims or profitability
- 04MINORHigh royalty rate (9%) combined with wide investment range ($161.5K–$607.9K) suggests inconsistent unit economics
- 05HIGHNo disclosed litigation history may be incomplete; single-unit system limits transparency
- 06MINORFranchise fee ($57,647) represents 36% of minimum investment with unclear payback timeline
- 07MINORUnknown unit growth trajectory — no data on retention, expansion, or system momentum
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.