A54/100FDD 2026
Mighty Dog Roofing — Litigation & Risk
Home Services - Other · FDD Items 3, 4 & 5
Elevated Risk
9 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
9
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
54 / 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
127
Government-backed loans issued
Default rate
10.5%
vs <3% typical · system-wide
5-yr default rate
10.5%
Defaults
2 loans
Loans charged off or defaulted
Total loan volume
$29.2M
Avg loan size
$230K
Participating lenders
10
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
Pennsylvania
State whose law governs disputes — relevant if you're not based there
What drove the 54/100 rating
Risk Score Breakdown
- 01HIGHNine total litigation actions (4 franchisor-initiated + 5 franchisee rescission claims) indicate material disputes and potential misrepresentation issues
- 02MINORNo Item 19 (Average Net Income) disclosure prevents accurate ROI assessment despite $171.5K-$224K initial investment
- 03MINORFive pending franchisee rescission lawsuits based on misrepresentation allegations suggest systemic disclosure or performance promise problems
- 04MINOR9.6% YoY unit growth is modest for a roofing services franchise; slower growth may indicate market saturation or franchisee dissatisfaction
- 05MINORTiered royalty structure with $500 minimum floor means lower-revenue franchisees pay disproportionately (up to 6% vs promised 2% at scale)
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.