Miracle Method: Litigation & Risk
Cleaning & Maintenance · FDD Items 3, 4 & 5
Moderate: Review
1 case disclosed in FDD Items 3 and 4.
FDD Items 3 & 4
Litigation Metrics
- Cases disclosed
- 1
- Total from FDD Items 3 and 4
- Bankruptcy (Item 4)
- None
- Franchisor or officer bankruptcy
- Verdict score
- 95 / 100
- FranchiseVerdict composite · higher is better
- Rating
- A
- A / B / C / D / F verdict grade
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Charge-off 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
- Charge-off rate
- 0.0%
- vs 16% franchise average
- 5-yr charge-off rate
- N/A
- 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
- Not waived
- 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
- CO
- State whose law governs disputes. Relevant if you're not based there
Extracted from FDD Item 3
Litigation Detail
One affiliate action: MaidPro Franchise LLC Consent Order with Maryland Securities Commissioner (Case No. 2025-0075), $15,000 penalty for inadvertent violation of franchise fee deferral requirement in two 2022 franchise sales.
What drove the 95/100 verdict
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.