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AStrongest tier74/100FDD 2025

Junk Shot / Doorstep Details: Litigation & Risk

Business Services · 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)
None
Franchisor or officer bankruptcy
Verdict score
74 / 100
FranchiseVerdict composite · higher is better
Rating
A
A / B / C / D / F verdict grade

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Charge-off rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
17
Government-backed loans issued
Charge-off rate
N/A
vs 16% franchise average
5-yr charge-off rate
N/A
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$2.6M
Avg loan size
$156K
Participating lenders
6

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
FL
State whose law governs disputes. Relevant if you're not based there

Extracted from FDD Item 3

Litigation Detail

No litigation required to be disclosed.

What drove the 74/100 verdict

Risk Score Breakdown

  1. 01MEDNo average net income disclosed (Item 19) — cannot verify actual profitability despite $436k avg revenue
  2. 02MINORUnprotected territory creates direct competition risk and potential cannibalizing of franchisee revenue
  3. 03MINORWide investment range ($90k–$352k) suggests inconsistent startup costs and unclear value proposition
  4. 04HIGHGoing Concern = False indicates potential financial stress at corporate level affecting support
  5. 05MINORMinimum monthly royalty structure (floor unknown) could consume 7%+ of gross revenue even during slow periods
  6. 06MEDOnly 36 units with 23.1% YoY growth is modest for a labor-intensive service franchise and suggests limited scale

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.