D75/100FDD 2024
Lemon Fresh Cleaners — Litigation & Risk
Cleaning - Commercial & Janitorial · 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
75 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID
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
What drove the 75/100 rating
Risk Score Breakdown
- 01HIGHGoing Concern status is FALSE — indicates financial distress or viability questions at corporate level
- 02MINORZero franchised units with unknown growth trajectory — brand has no operating franchise base to validate model
- 03MEDNo Item 19 disclosure (Avg Revenue and Net Income not disclosed) — impossible to assess ROI or validate $42,650-$66,550 investment thesis
- 04MINORHigh franchise fee ($36,000) relative to low total investment ($42,650-$66,550) — 53-84% of capital goes to franchisor, leaving minimal working capital
- 05MED8% royalty on undisclosed revenue — no visibility into actual take-home profitability or breakeven timeline
- 06HIGHNo disclosed litigation but going concern flag suggests underlying operational or financial instability
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.