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B62/100FDD 2025

iNX Building Maintenance Solutions — Litigation & Risk

Cleaning - Commercial & Janitorial · FDD Items 3, 4 & 5

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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
62 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
1 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
California
State whose law governs disputes — relevant if you're not based there

What drove the 62/100 rating

Risk Score Breakdown

  1. 01MEDUnit count declined 23.1% YoY (10 units) indicating system contraction and potential franchisee dissatisfaction
  2. 02MINORNo net income disclosure despite $1.4M avg revenue suggests profitability concerns or FDD non-compliance
  3. 03MINOR15% royalty on billed revenue is extremely high for building maintenance services (industry standard: 5-8%)
  4. 04MINORHigh investment range ($109K-$357K) combined with declining units suggests poor ROI expectations
  5. 05HIGHNo 'Going Concern' statement is FALSE, which may indicate franchisor financial instability or undisclosed issues
  6. 06MINORLow franchise fee ($9,995) relative to total investment suggests front-loaded royalty model to extract cash flow
  7. 07MINORItem 19 (Financial Performance Representations) absent—critical metric for validating the $1.4M average revenue claim

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.