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B62/100FDD 2025

Maid Right — Litigation & Risk

Cleaning - Commercial & Janitorial · FDD Items 3, 4 & 5

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Elevated Risk

17 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
17
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
62 / 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
15
Government-backed loans issued
Default rate
66.7%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
2 loans
Loans charged off or defaulted
Total loan volume
$2.2M
Avg loan size
$150K
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
Virginia
State whose law governs disputes — relevant if you're not based there

What drove the 62/100 rating

Risk Score Breakdown

  1. 01MEDSystem contracting sharply: 35 units representing 20.5% YoY decline signals franchisee failure or attrition
  2. 02HIGHSevere litigation exposure: 17 legal actions including fraud allegations, breach of contract, and 8 governmental regulatory actions create legal/reputational risk
  3. 03MEDNo profitability transparency: Average net income not disclosed despite $520K average revenue—suggests margins are weak or negative
  4. 04HIGHGoing concern status is FALSE: Indicates auditor doubt about franchisor's ability to continue operations
  5. 05HIGHHigh litigation-to-unit ratio: 17 actions across 35 units (49% of system involved in litigation) is exceptionally high
  6. 06MINORRegulatory compliance failures: 8 governmental actions suggest FDD/disclosure violations and state regulatory violations

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.