A41/100FDD 2025
Pink’s Window Services — Litigation & Risk
Cleaning - Commercial & Janitorial · FDD Items 3, 4 & 5
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
41 / 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
14
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Not required
You retain the right to sue in court
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
Texas
State whose law governs disputes — relevant if you're not based there
What drove the 41/100 rating
Risk Score Breakdown
- 01MINORExplosive unit growth (4400% YoY) is unsustainable and suggests either data error, recent launch phase volatility, or aggressive recruitment over retention
- 02HIGHNo Item 19 Financial Performance Representation (Going Concern = False) means franchisor provides no earnings claims — cannot independently verify $314,857 avg net income figure
- 03MINORHybrid royalty structure ($346/week minimum PLUS 7%) creates unpredictable cash flow; $346/week = $17,992/year floor on 47 units = $846,000+ system-wide royalty burden
- 04MED47 total units indicates very young or niche franchise system with limited operational track record and higher failure risk during market downturns
- 05MINORHigh initial investment ($128K-$166.5K) combined with no verified earnings data creates significant downside risk
- 06MINORWindow services are seasonal, weather-dependent, and labor-intensive — margins vulnerable to economic contraction and staffing challenges
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.