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A45/100FDD 2025

Mosquito Shield — Litigation & Risk

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

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Lower Risk

No litigation cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
0
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
54
Government-backed loans issued
Default rate
7.7%
vs <3% typical · system-wide
5-yr default rate
7.7%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$11.4M
Avg loan size
$212K
Participating lenders
15

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
Utah
State whose law governs disputes — relevant if you're not based there

What drove the 45/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 (Average Net Income) disclosure — impossible to validate actual profitability against $120k-$158k investment
  2. 02MINORSlow unit growth (6.9% YoY) suggests market saturation or franchisee satisfaction issues in a mature 435-unit system
  3. 03MEDHigh royalty floor risk — 8% minimum on 'Minimum Gross Sales' creates revenue pressure even in slow months; actual minimum threshold not disclosed
  4. 04MINORAverage revenue of $285k leaves thin margin for $120k+ investment, especially if net income is materially lower than expected
  5. 05MINORSeasonal service business (mosquito control peaks spring-summer) creates cash flow volatility not addressed in disclosure

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.