B65/100FDD 2024
Molly Maid — Litigation & Risk
Cleaning - Commercial & Janitorial · FDD Items 3, 4 & 5
Moderate — Review
2 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
65 / 100
FranchiseVerdict composite
Rating
MODERATE
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
169
Government-backed loans issued
Default rate
10.2%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
13 loans
Loans charged off or defaulted
Total loan volume
$31.3M
Avg loan size
$185K
Participating lenders
67
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
Texas
State whose law governs disputes — relevant if you're not based there
What drove the 65/100 rating
Risk Score Breakdown
- 01MINORSystem declining 3.5% YoY with 464 units suggests market saturation or operational challenges
- 02MINORNo Item 19 disclosure (Avg Revenue/Net Income) prevents realistic ROI assessment and suggests weak franchisee performance data
- 03HIGHTwo litigation consent judgments (background checks, gift certificates, advertising) indicate compliance weaknesses and consumer protection vulnerabilities
- 04MEDRoyalty range of 3-6.5% is high-end for home cleaning and combined with undisclosed income creates uncertainty about true profitability
- 05MEDInitial investment of $138K-$196K requires 3-10 years to break even without disclosed average unit volumes
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.