A49/100FDD 2025
Mint Condition — Litigation & Risk
Cleaning - Commercial & Janitorial · FDD Items 3, 4 & 5
Elevated Risk
6 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
6
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
49 / 100
FranchiseVerdict composite
Rating
STRONG
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
North Carolina
State whose law governs disputes — relevant if you're not based there
What drove the 49/100 rating
Risk Score Breakdown
- 01HIGHMultiple active litigation disclosures alleging breach of contract, fraud, and unfair trade practices indicate systemic franchisor-franchisee relationship issues
- 02MEDHigh royalty structure (greater of 4% or minimum monthly fee) with undisclosed minimum threshold creates unpredictable cost burden
- 03MINORRapid 40% YoY unit growth (9 to 15 units) may indicate aggressive recruitment outpacing sustainable support infrastructure
- 04HIGHZero franchise fee combined with litigation history suggests franchisor may prioritize unit growth over franchisee profitability
- 05HIGHGoing Concern disclosure is False but Item 19 financial data absent — unable to verify sustainability of franchisor operations or franchisee economics
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.