A41/100FDD 2025
Lawn Doctor — 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
41 / 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
104
Government-backed loans issued
Default rate
11.0%
vs <3% typical · system-wide
5-yr default rate
14.3%
Defaults
8 loans
Loans charged off or defaulted
Total loan volume
$19.8M
Avg loan size
$190K
Participating lenders
44
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
1.5 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
New Jersey
State whose law governs disputes — relevant if you're not based there
What drove the 41/100 rating
Risk Score Breakdown
- 01MEDNo Item 19 (Average Net Income) disclosed — unable to validate actual profitability against $150k-$177k investment
- 02MINORSlow unit growth of 3.7% YoY in a mature 653-unit system suggests market saturation or retention challenges
- 03MEDHigh franchise fee ($127k) represents 85% of total investment with no disclosed net income to justify ROI
- 04MEDRoyalty structure (10% of net revenues) on undisclosed profitability creates earnings opacity for franchisees
- 05MINORService-based lawn care is labor-intensive and seasonally dependent with high customer acquisition costs
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.