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B64/100FDD 2026

Pillar To Post — Litigation & Risk

Home Services - Other · FDD Items 3, 4 & 5

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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
64 / 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
40
Government-backed loans issued
Default rate
18.5%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
5 loans
Loans charged off or defaulted
Total loan volume
$5.0M
Avg loan size
$126K
Participating lenders
30

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 64/100 rating

Risk Score Breakdown

  1. 01MINORUnit count declining 7.3% YoY (382 units) — shrinking franchise system indicates market saturation or franchisee dissatisfaction
  2. 02MINORNo average net income disclosure — opacity around profitability makes ROI assessment impossible; cannot verify if $307,908 avg revenue translates to viable income
  3. 03HIGHTwo litigation cases including master franchisee dispute — suggests franchisor-franchisee relationship strain and potential disputes over performance standards and renewal terms
  4. 04MEDHigh initial investment ($102,690–$134,290) + 7% royalties with variable monthly minimums ($0–$2,328) creates unpredictable cost structure relative to undisclosed profitability
  5. 05MINORNo protected territory — franchisee competes with other Pillar To Post locations and master franchisees in same area; risk of encroachment and channel conflict
  6. 06HIGH5-year term with no stated renewal protections — master franchisee litigation over non-renewal signals potential franchise termination/non-renewal risks
  7. 07HIGHGoing Concern = False — unclear what this means operationally; needs clarification on franchisor financial stability

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.