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D75/100FDD 2025

PlumbingPro — Litigation & Risk

Home Services - Plumbing & HVAC · 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
75 / 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
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
Louisiana
State whose law governs disputes — relevant if you're not based there

What drove the 75/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 franchisee unit in system with unknown growth trajectory suggests failed or stalled franchise model
  2. 02HIGHGoing Concern status is FALSE — indicates franchisor financial distress or operational viability questions
  3. 03MINORNo Item 19 (average revenue/income) disclosure — impossible to assess ROI on $406k-$425k investment
  4. 04MINORHigh franchise fee ($147,500) represents 36% of total investment with no performance benchmarks to justify it
  5. 05MED6% royalty on undisclosed revenue creates ongoing cost burden with no visibility into franchisee profitability
  6. 06MINOR10-year term locks franchisee into relationship with single-unit, non-growing system

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.