AStrongest tier68/100FDD 2026
Novus Glass: Litigation & Risk
Automotive · 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)
- None
- Franchisor or officer bankruptcy
- Verdict score
- 68 / 100
- FranchiseVerdict composite · higher is better
- Rating
- A
- A / B / C / D / F verdict grade
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Charge-off rate is the share of loans that were charged off or settled for less than the full balance.
- Total 7(a) loans
- 16
- Government-backed loans issued
- Charge-off rate
- N/A
- vs 16% franchise average
- 5-yr charge-off rate
- N/A
- Defaults
- 1 loans
- Loans charged off or defaulted
- Total loan volume
- $2.7M
- Avg loan size
- $170K
- Participating lenders
- 5
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
- Not waived
- 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
- FL
- State whose law governs disputes. Relevant if you're not based there
Extracted from FDD Item 3
Litigation Detail
Sara Roos v. ProColor Collision USA LLC, Orange County CA Case No. 30-2024-01438351-CU-WT-CJC. Former employee alleges wrongful termination and harassment (11 claims). Motion for summary judgment filed March 2026; trial set July 2026.
What drove the 68/100 verdict
Risk Score Breakdown
- 01MINORUnit count declining 3.9% YoY (123 total units) suggests system contraction and potential market saturation
- 02MEDNet income not disclosed in Item 19 prevents ROI validation; only average revenue of $351,734 provided without profitability context
- 03HIGHActive litigation involving affiliate ProColor Collision USA LLC for sexual harassment and wrongful termination raises HR/culture concerns across related entities
- 04MINORHigh investment range ($69,500–$284,690) with 6% royalty creates breakeven pressure if actual net margins are below 12–15%
- 05MINOR10-year term locks franchisees into relationship during declining unit growth period with no profitability guarantees
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.