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A48/100FDD 2024

NaturaLawn of America — Litigation & Risk

Home Services - Lawn & Landscaping · 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
48 / 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
21
Government-backed loans issued
Default rate
11.8%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
2 loans
Loans charged off or defaulted
Total loan volume
$3.5M
Avg loan size
$166K
Participating lenders
18

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 48/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 (Net Income) disclosure prevents ROI validation despite $2.2M average revenue claim
  2. 02MINORSlow unit growth of 6.0% YoY suggests market saturation or franchisee satisfaction issues in mature 99-unit system
  3. 03MINORHigh initial investment range ($57.5K-$122.6K) combined with 9% royalty creates breakeven uncertainty without profit data
  4. 04MINOR5-year term is shorter than industry standard (10 years), increasing renewal/renegotiation risk
  5. 05MINORLawn care is seasonal/weather-dependent with thin margins; no disclosure of average net income raises profitability concerns

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.