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B67/100FDD 2022

NuVinAir — 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
67 / 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
2
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$648K
Avg loan size
$324K
Participating lenders
2

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
No
Franchisor can match any purchase offer when you try to sell
Governing law
Texas
State whose law governs disputes — relevant if you're not based there

What drove the 67/100 rating

Risk Score Breakdown

  1. 01MINORNo financial performance disclosure (Item 19) — unable to validate $313K+ investment ROI claims
  2. 02MINORHigh franchise fee ($300K) with zero royalties creates misaligned incentives and suggests front-loaded franchisor revenue model
  3. 03MINOR102 units with exactly 100% YoY growth is statistically improbable and suggests possible data inconsistency or cherry-picked reporting
  4. 04MINORNo average revenue or net income data provided — impossible to calculate payback period or validate profitability claims
  5. 05MINOR10-year term is longer than industry standard (5-7 years), locking franchisees into potentially unfavorable agreements
  6. 06HIGHAbsence of litigation disclosure doesn't confirm absence of disputes — may indicate unreported conflicts or recent system entry

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.