FranchiseVerdict
Mosquito Joe logo
B59/100FDD 2024

Mosquito Joe — Litigation & Risk

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

Back to overview

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
59 / 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
91
Government-backed loans issued
Default rate
15.8%
vs <3% typical · system-wide
5-yr default rate
27.3%
Defaults
6 loans
Loans charged off or defaulted
Total loan volume
$20.3M
Avg loan size
$223K
Participating lenders
19

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 59/100 rating

Risk Score Breakdown

  1. 01HIGHActive litigation from three separate franchisees alleging breach of contract, fraudulent inducement, and misrepresentation—indicating systemic dispute patterns
  2. 02MEDAverage Net Income not disclosed in FDD Item 19—prevents validation of $364,223 revenue translates to actual profitability after expenses
  3. 03MINORSlow unit growth (5.6% YoY) on 418-unit base suggests market saturation or franchisee satisfaction issues in mature system
  4. 04MEDHigh initial investment ($115,630–$157,500) relative to undisclosed net income creates uncertainty about ROI timeline
  5. 05HIGHDisputed direct marketing program at center of litigation raises questions about franchisor support model and lead generation reliability

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.