FranchiseVerdict
NiteLites logo
D72/100FDD 2026

NiteLites — Litigation & Risk

Home Services - Lawn & Landscaping · FDD Items 3, 4 & 5

Back to overview

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
72 / 100
FranchiseVerdict composite
Rating
CAUTION
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
Ohio
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MEDSevere unit decline of 30% YoY (from ~18.6 to 13 units) indicates systemic business model or market problems
  2. 02MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) prevents realistic ROI evaluation
  3. 03HIGHGoing Concern status is False, suggesting potential franchisor financial distress or viability questions
  4. 04HIGHLitigation history shows material breach judgment against franchisee in 2013; indicates enforcement aggressiveness and/or franchisee failure patterns
  5. 05MEDMinimum royalty fee structure with undisclosed revenue benchmarks creates opaque cost burden and cash flow risk
  6. 06MINORSmall system size (13 units) with rapid contraction limits support infrastructure, purchasing power, and brand recognition
  7. 07MINOR5-year term is relatively short, limiting franchisee ability to recoup $66K-$111K investment plus working capital

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.