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B59/100FDD 2025

Pest Authority — Litigation & Risk

Home Services - Pest Control · FDD Items 3, 4 & 5

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Moderate — Review

5 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
5
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
59 / 100
FranchiseVerdict composite
Rating
MODERATE
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
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
North Carolina
State whose law governs disputes — relevant if you're not based there

What drove the 59/100 rating

Risk Score Breakdown

  1. 01MINORNo financial performance disclosure (Item 19) — cannot validate $40.5K-$105.7K investment against actual franchisee returns
  2. 02HIGHPredecessor litigation involving TMA and Soccer Shots regarding franchise registration compliance and non-compete enforcement raises franchisor operational/legal risk
  3. 03MEDAggressive unit growth (31.6% YoY) without disclosed average revenue suggests potential saturation or franchisee recruitment over retention strategy
  4. 04MINOREscalating minimum royalty fees ($200→$700 over 7 years) combined with 7.5% gross revenue royalty creates rising expense burden independent of profitability
  5. 05HIGHGoing concern status is FALSE — ambiguity about franchisor financial stability and parent company backing

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.