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A41/100FDD 2026

Premiergarage — Litigation & Risk

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

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
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
4
Government-backed loans issued
Default rate
100.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
4 loans
Loans charged off or defaulted
Total loan volume
$1.0M
Avg loan size
$261K
Participating lenders
3

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

What drove the 41/100 rating

Risk Score Breakdown

  1. 01MEDUnit decline of 8.2% YoY indicates system contraction and reduced franchisee success/retention
  2. 02MEDNet income not disclosed in Item 19 prevents ROI validation; only average revenue ($375k) provided without profitability context
  3. 03MINORRoyalty structure of 5% + $500-$1,000/month creates high fixed costs ($6k-$12k annually) that may not be justified for lower-revenue territories
  4. 04HIGH2006 litigation history (Maryland Securities Division consent order on affiliate Aussie Pet Mobile) signals prior compliance/disclosure failures and reputational risk
  5. 05HIGHGoing Concern status 'False' is ambiguous but combined with shrinking unit count raises sustainability concerns
  6. 06MED10-year term is lengthy; combined with -8.2% YoY decline, suggests franchisees may be locked into underperforming investment

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.