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B57/100FDD 2025

North Central Insulation — Litigation & Risk

Home Services - Other · 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
57 / 100
FranchiseVerdict composite
Rating
MODERATE
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
75
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
Required
Disputes resolved outside court — limits your legal options
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 57/100 rating

Risk Score Breakdown

  1. 01MEDNo average revenue or net income disclosed in FDD (Item 19 missing or incomplete) — impossible to validate ROI claims
  2. 02MEDExtremely small franchise system with only 7 units — high concentration risk and limited peer support network
  3. 03MINORUnknown unit growth trajectory — no disclosure of openings/closures suggests stagnation or contraction
  4. 04HIGHGoing Concern status is False — indicates potential financial instability at franchisor level
  5. 05MINORRoyalty structure heavily favors franchisor — $800/month floor means even low-revenue locations subsidize system
  6. 06MINORHigh initial investment ($87,450–$170,000) relative to system size and lack of performance data
  7. 07MINOR5-year term is relatively short for insulation contracting business with slow customer acquisition

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.