AStrongest tier59/100FDD 2025
Mach One: Litigation & Risk
Home Services · 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)
- None
- Franchisor or officer bankruptcy
- Verdict score
- 59 / 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
- 9
- Government-backed loans issued
- Charge-off rate
- N/A
- vs 16% franchise average
- 5-yr charge-off rate
- N/A
- Defaults
- N/A
- Loans charged off or defaulted
- Total loan volume
- $1.3M
- Avg loan size
- $139K
- 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
- 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
- NH
- 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 in Item 3.
What drove the 59/100 verdict
Risk Score Breakdown
- 01MEDNo average revenue or net income disclosed (Item 19) — impossible to validate ROI claims or unit economics
- 02MINOROnly 16 units system-wide with explosive 150% YoY growth is unsustainable and suggests either cherry-picked data or recent launch with unproven model
- 03MINORZero territory protection leaves franchisees vulnerable to direct competition from other franchisees and the franchisor itself
- 04MINORHigh franchise fee ($50,000) relative to total investment range ($95,450-$235,500) indicates 52% goes to franchisor before operations begin
- 05MINORTiered royalty structure (7%-5%) combined with no profitability data creates unclear path to positive cash flow
- 06MINOR7-year term without disclosure of renewal terms, exit clauses, or post-term competition restrictions
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.