A39/100FDD 2025
Insulation Commandos — 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
39 / 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
5
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
$1.5M
Avg loan size
$305K
Participating lenders
2
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
Tennessee
State whose law governs disputes — relevant if you're not based there
What drove the 39/100 rating
Risk Score Breakdown
- 01MINORExplosive unit growth of 3100% YoY suggests either newly launched franchise system or severe data anomaly — growth this extreme is unsustainable and indicates instability
- 02MINORHigh initial investment range ($215k-$408k) combined with 6% royalty (or minimum monthly fee) creates significant breakeven burden for new franchisees
- 03MINORWide investment range ($193k spread) suggests inconsistent territory valuations and unclear cost structure — lack of transparency on what drives costs
- 04MEDMinimum royalty structure not disclosed — if monthly minimum is high, could create cash flow pressure for early-stage locations
- 05MEDNo Item 19 financial performance representations in FDD — $340k avg net income cannot be independently verified against disclosed figures
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.