FranchiseVerdict
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D72/100FDD 2024

MasterTech Environmental — Litigation & Risk

Cleaning - Commercial & Janitorial · 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
72 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

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

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MEDSystem shrinking rapidly: 9 units with -12.5% YoY decline indicates collapsing franchisee base
  2. 02MINORNo financial disclosure (Item 19): Average revenue and net income not provided—impossible to validate ROI claims
  3. 03HIGHGoing Concern status is FALSE: Suggests franchisor may lack financial stability or operational viability
  4. 04MINORHigh initial investment ($49K franchise fee + $64,950–$122,200 total) with unproven unit economics
  5. 05MINORPro Franchise option ($870/month) appears designed to attract undercapitalized franchisees with questionable support model
  6. 06MINOROnly 9 remaining units makes territory protection claim difficult to enforce; minimal network for referrals/support

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.