FranchiseVerdict
Keyrenter Property Management logo
A47/100FDD 2025

Keyrenter Property Management — Litigation & Risk

Real Estate · FDD Items 3, 4 & 5

Back to overview

Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
47 / 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
20.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$580K
Avg loan size
$116K
Participating lenders
4

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
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
Utah
State whose law governs disputes — relevant if you're not based there

What drove the 47/100 rating

Risk Score Breakdown

  1. 01HIGHActive litigation alleging fraud and breach of contract involving customer claims against franchisee operations raises quality control and liability concerns
  2. 02MINORNo protected territory creates direct competition risk and potential for system cannibalization as the 58-unit network grows
  3. 03MINORModest unit growth (7.4% YoY) combined with only 58 total units suggests slower expansion than typical high-performing franchises, questioning market demand
  4. 04MINORHigh royalty structure (up to 7% of gross revenue) combined with franchise fee ($50k) and startup costs ($116-241k) creates significant break-even pressure on average net income of $177k
  5. 05MINORNo Item 19 financial performance representation limits ability to validate claimed average revenue ($697k) and net income figures independently

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.