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A45/100FDD 2025

MaidPro — Litigation & Risk

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

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
45 / 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
48
Government-backed loans issued
Default rate
9.7%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
3 loans
Loans charged off or defaulted
Total loan volume
$8.5M
Avg loan size
$177K
Participating lenders
33

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
Massachusetts
State whose law governs disputes — relevant if you're not based there

What drove the 45/100 rating

Risk Score Breakdown

  1. 01MEDNo average net income disclosed in Item 19 — impossible to verify actual franchisee profitability against $109,860-$158,650 investment
  2. 02MINORUnknown unit growth trajectory — 237 units reported but no growth metrics; potential stagnation or contraction masked
  3. 03HIGHRecent litigation (March 2024) involving non-compete enforcement suggests franchisor-franchisee conflict and potential post-termination difficulties
  4. 04MINOR6% royalty on gross (not net) sales creates cash flow pressure during slow periods and misalignment with franchisee profitability
  5. 05MEDHigh franchise fee ($45,000) relative to service-based model with uncertain payback period given missing profitability data

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.