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B65/100FDD 2026

Linc Service — Litigation & Risk

Home Services - Plumbing & HVAC · 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)
—
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
4
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
Total loan volume
$7.0M
Avg loan size
$1.7M
Participating lenders
2

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
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

  1. 01MEDUnit count declined 9.0% year-over-year (103 units) suggesting system contraction and franchisee struggles
  2. 02MEDNo average net income disclosed despite $9.75M average revenue — opaque profitability makes ROI impossible to validate
  3. 03MINORHigh franchise fee ($75,000) combined with wide investment range ($66.5K-$140K) indicates unclear total cost of ownership
  4. 04HIGHGoing Concern status is FALSE — potential financial instability at corporate level raises system viability questions
  5. 05MINORRoyalty range of 2.5%-4.5% lacks transparency on what determines tier placement and actual franchisee burden

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.