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D76/100FDD 2023

Patio Patrol — Litigation & Risk

Home Services - Pest Control · 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
76 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

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
1.5 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
Massachusetts
State whose law governs disputes — relevant if you're not based there

What drove the 76/100 rating

Risk Score Breakdown

  1. 01MEDFranchise system shrinking: 7 units with -12.5% YoY decline indicates deteriorating franchisee success or retention
  2. 02MINORNo financial disclosure: Franchisor refuses to disclose average unit revenue or net income (Item 19), preventing ROI validation
  3. 03HIGHGoing concern status FALSE: Business model or franchisor stability concerns flagged by lack of 'going concern' affirmation
  4. 04MEDHigh initial investment ($74.5K-$169.5K) with no disclosed revenue benchmarks creates unpredictable payback period
  5. 05MINORRoyalty floor of $600/month creates fixed cost burden even for underperforming units
  6. 06MINORExtremely small franchise network (7 units) limits peer validation and suggests weak market traction

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.