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A50/100FDD 2025

Neat Method — Litigation & Risk

Automotive - Repair & Service · 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
50 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID

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

What drove the 50/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 (Average Net Income) disclosed — impossible to validate the $163,424 average revenue claim or actual profitability
  2. 02MINORRegulatory violation in 2018 (Washington State Consent Order) indicates compliance weaknesses in franchise sales and disclosure practices
  3. 03MINORWide royalty range (8-20%) based on opaque tier/revenue targets creates uncertainty about true cost structure and franchisee profitability at different performance levels
  4. 04MINOROnly 94 units with unknown growth trajectory — system size unclear; no disclosure of unit closures or attrition rates
  5. 05MINORHigh royalty ceiling (20%) combined with unknown net income makes ROI on $37,500-$44,500 investment difficult to assess
  6. 06MINOR5-year term is relatively short; renewal risk and unit economics post-year-5 unknown

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.