A45/100FDD 2024
Mosquito Authority — Litigation & Risk
Home Services - Pest Control · FDD Items 3, 4 & 5
Moderate — Review
5 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
5
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
45 / 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
39
Government-backed loans issued
Default rate
8.3%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$6.2M
Avg loan size
$159K
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
North Carolina
State whose law governs disputes — relevant if you're not based there
What drove the 45/100 rating
Risk Score Breakdown
- 01MINORMinimal unit growth (1.7% YoY) suggests market saturation or franchisee underperformance in 551-unit system
- 02MINORMultiple regulatory violations by predecessor entity (Maryland, Rhode Island, Virginia, Minnesota) indicate compliance or disclosure issues in franchise operations
- 03MINORHigh royalty rate (10%) combined with modest average net income ($71,691) creates thin margin for franchisee profitability after fees
- 04MEDNo Item 19 (Financial Performance Representation) disclosed—difficult to validate whether average figures are achievable or survivorship-biased
- 05HIGHNo-poaching litigation with affiliate Soccer Shots suggests potential franchisor labor practice concerns or restrictive covenant enforcement
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.