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A35/100FDD 2025

Net Positive Pool Services — Litigation & Risk

Cleaning - Commercial & Janitorial · 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
35 / 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
2
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

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

What drove the 35/100 rating

Risk Score Breakdown

  1. 01MEDOnly 6 units in system with 66.7% YoY growth indicates very early-stage franchise with limited track record and unproven scalability
  2. 02MEDNo Item 19 (Financial Performance Representations) disclosed — cannot independently verify claimed $279,636 average net income or validate if all units achieve similar returns
  3. 03MINORWide investment range ($70,975–$221,700) suggests inconsistent startup costs or territory-dependent pricing, creating uncertainty around actual capital requirements
  4. 04MINORFranchise fee of $49,500 on $70,975 minimum investment represents 70% of entry cost for a brand with only 6 operating units
  5. 05MINORAggressive 8% royalty tier (vs. 7% above $1M) on average $1.42M revenue creates $113,561 annual royalty burden — reducing net income visibility and franchisee profitability predictability

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.