B65/100FDD 2024
Joshua Tree Experts — Litigation & Risk
Home Services - Lawn & Landscaping · 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
65 / 100
FranchiseVerdict composite
Rating
MODERATE
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
8
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
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 65/100 rating
Risk Score Breakdown
- 01MINOROnly 2 existing units with unknown growth trajectory indicates severely underdeveloped franchise system
- 02MINORNo protected territory creates direct competition risk and cannibalization potential between franchisees
- 03MINORTiered royalty structure with $19,231 weekly minimum is aggressive and may not be achievable for new operators
- 04MINORInvestment range ($460K–$597K) is substantial for a 2-unit franchise with no proven scalability
- 05MINORNo Item 19 financial performance representations despite franchisor citing $705K average revenue and $141K net income
- 06MINOR10-year term lock-in is lengthy given franchise system immaturity and unproven unit economics
- 07HIGHGoing concern status is not disclosed, raising transparency and financial stability questions
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.