A32/100FDD 2026
Miracle Method — Litigation & Risk
Cleaning - Commercial & Janitorial · FDD Items 3, 4 & 5
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
32 / 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
12
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$1.7M
Avg loan size
$139K
Participating lenders
11
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
Colorado
State whose law governs disputes — relevant if you're not based there
What drove the 32/100 rating
Risk Score Breakdown
- 01MEDNo Item 19 (Average Unit Volume) disclosed — inability to validate $1.36M average revenue claim or actual franchisee profitability
- 02MINORSlow unit growth of 4.9% YoY suggests market saturation or franchisee dissatisfaction in a mature 213-unit system
- 03HIGHParent company litigation (MaidPro) in August 2025 for franchise fee deferral violations indicates compliance risk within corporate structure
- 04MINORHigh royalty floor ('whichever is greater') creates unpredictable minimum payments that could exceed 5.5% for low-revenue locations
- 05MEDHigh initial investment ($142.5K–$261.8K) combined with undisclosed net income makes ROI validation impossible
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.