FranchiseVerdict
MOSQUITO HUNTERS/HUMBUG HOLIDAY LIGHTING logo
B63/100FDD 2024

Mosquito Hunters/Humbug Holiday Lighting — Litigation & Risk

Home Services - Pest Control · FDD Items 3, 4 & 5

Back to overview

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
63 / 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
8
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

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
1.5 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
New Jersey
State whose law governs disputes — relevant if you're not based there

What drove the 63/100 rating

Risk Score Breakdown

  1. 01MINORDeclining unit count (-0.8% YoY) indicates stagnating or shrinking system growth
  2. 02HIGHActive litigation with fraudulent inducement allegations suggests potential disclosure or operational issues
  3. 03MINORNo Item 19 (average revenue/net income) disclosure prevents validation of ROI claims and profitability benchmarks
  4. 04MEDHigh franchise fee ($107,000) combined with undisclosed average revenues creates unclear payback timeline
  5. 05MINORDual-brand model (Mosquito Hunters + Humbug Holiday Lighting) may dilute focus and create operational complexity
  6. 06MINORCounter-claim for $100,000+ suggests franchisor-franchisee relationship deterioration and potential control issues

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.