B62/100FDD 2025
Orkin — Litigation & Risk
Home Services - Pest Control · FDD Items 3, 4 & 5
Moderate — Review
2 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
62 / 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
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
$363K
Avg loan size
$363K
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
Georgia
State whose law governs disputes — relevant if you're not based there
What drove the 62/100 rating
Risk Score Breakdown
- 01MEDUnit count declined 8.7% YoY (504 units), indicating system contraction and potential market saturation or franchisee struggles
- 02MEDNo Item 19 financial disclosure (Avg Revenue/Net Income not disclosed), making ROI projections impossible to validate
- 03MINORParent company Rollins, Inc. settled SEC investigation regarding accounting reserves and reporting accuracy—raises transparency concerns at corporate level
- 04MINORUnprotected territory creates direct competition risk; franchisees may cannibalize each other's customer bases
- 05MEDHigh initial investment ($84,975–$528,700) paired with 7% royalty and undisclosed profitability metrics creates uncertain payback period
- 06HIGHRelated litigation (Critter Control settlement for registration violations) suggests compliance or regulatory vulnerabilities within Rollins' pest control division
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.