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A49/100FDD 2024

Mosquito Squad — Litigation & Risk

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

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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
49 / 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
37
Government-backed loans issued
Default rate
6.7%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$12.6M
Avg loan size
$340K
Participating lenders
20

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

What drove the 49/100 rating

Risk Score Breakdown

  1. 01HIGHLitigation: Assurance of Discontinuance (AOD) with Massachusetts AG for misleading advertising claims regarding environmental and health-and-safety benefits — indicates past regulatory violation and potential reputational risk
  2. 02MINORAnemic Unit Growth: Only 1.9% YoY growth across 232 units suggests market saturation, franchisee churn, or weakening brand demand in a mature system
  3. 03MINORHigh Royalty Burden: Greater of 10% or $650-$3,000 monthly minimum creates cash flow pressure; at $471k avg revenue, 10% royalty = $47,189/year plus marketing/support fees
  4. 04MINORNo Item 19 Financial Disclosure: Absence of audited earnings data limits ability to verify the stated $386,869 average net income claim independently
  5. 05MINORSeasonal Business Model: Mosquito control is weather and season-dependent, creating revenue volatility not fully captured in single-year averages

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.