A39/100FDD 2025
Noble Locksmith — Litigation & Risk
Home Services - Other · FDD Items 3, 4 & 5
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
39 / 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
1
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$135K
Avg loan size
$135K
Participating lenders
1
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
California
State whose law governs disputes — relevant if you're not based there
What drove the 39/100 rating
Risk Score Breakdown
- 01MINORRegulatory violation in California (2020) for unregistered franchise sales — indicates compliance gaps and potential franchisor oversight issues
- 02MEDNo average net income disclosed — cannot validate actual profitability despite $895K average revenue; royalty structure (7% or $350–$1,350/week minimum) could consume 15–20% of net income at lower revenue levels
- 03MEDSmall unit base (14 franchises) with modest growth (18.2% YoY) — limited scale, higher systemic risk if units underperform or churn accelerates
- 04MINORHigh investment-to-revenue ratio — $243,600 max investment against $895K average revenue creates 3.6-year ROI hurdle; 7% royalty plus mandatory weekly minimums create front-loaded cost burden
- 05MINORItem 19 (Financial Performance Representations) not provided — franchisor disclosure gaps prevent validation of revenue and profitability claims
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.