Office Pride: Litigation & Risk
Cleaning & Maintenance · FDD Items 3, 4 & 5
Moderate: Review
1 case disclosed in FDD Items 3 and 4.
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
- 71 / 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
- 4
- Government-backed loans issued
- Charge-off rate
- N/A
- vs 16% franchise average
- 5-yr charge-off rate
- N/A
- Defaults
- N/A
- Loans charged off or defaulted
- Total loan volume
- $1.2M
- Avg loan size
- $307K
- Participating lenders
- 3
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
- 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
Faith Franchising Company, LLC v. Titsworth Enterprises, Inc. and Adrian Titsworth (M.D. Fla., filed Feb 4, 2025) - franchisor sued franchisee for violating in-term and post-termination restrictive covenants by working with a competitor; court entered preliminary injunction; case stayed pending franchisee principal's bankruptcy.
What drove the 71/100 verdict
Risk Score Breakdown
- 01MINORDeclining unit count (-2.0% YoY) suggests system contraction and potential franchisee dissatisfaction
- 02HIGHActive litigation involving non-compete violations indicates franchisor enforcement challenges and potential franchisee conflicts
- 03MINORNo average net income disclosure (Item 19) prevents ROI validation despite $70-133k investment and 9% royalty burden
- 04MINORUnprotected territory creates direct competition risk between franchisees in same market
- 05MEDHigh royalty rate (9%) on modest average revenue ($713k) leaves limited margin for profitability verification
- 06MED10-year term lock-in with declining unit momentum suggests limited secondary market for resale
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.