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A43/100FDD 2026

Paul Davis Restoration — 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
43 / 100
FranchiseVerdict composite
Rating
STRONG
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
139
Government-backed loans issued
Default rate
7.9%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
6 loans
Loans charged off or defaulted
Total loan volume
$73.6M
Avg loan size
$529K
Participating lenders
54

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

What drove the 43/100 rating

Risk Score Breakdown

  1. 01MEDNo average net income disclosed in FDD Item 19 — impossible to assess actual profitability despite $4.8M avg revenue claim
  2. 02MINORUnprotected territory creates direct competition risk; other franchisees can operate in your service area
  3. 03MINORSlow unit growth of 4.1% YoY suggests market saturation or franchisee satisfaction issues in a mature 277-unit system
  4. 04MINORWide investment range ($298K–$804K) indicates high variance in startup costs and unclear ROI predictability
  5. 05MINOR$0 franchise fee is unusual and may signal low brand demand or financial pressure to recruit franchisees
  6. 06MINOR5-year term is relatively short; rebuilding customer base after term end is high-risk in service business

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.