A45/100FDD 2025
Preservan — 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
45 / 100
FranchiseVerdict composite
Rating
STRONG
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
Oklahoma
State whose law governs disputes — relevant if you're not based there
What drove the 45/100 rating
Risk Score Breakdown
- 01MINORExtreme unit growth of 400% YoY suggests either explosive success or aggressive recruitment masking underlying issues; only 11 total units indicates fragile base for such claims
- 02HIGHNo Item 19 financial performance representations (Going Concern: False) means average revenue and net income figures cannot be independently verified or are not representative
- 03MINORHigh franchise fee ($54,000) relative to total investment floor ($117,300) creates 46% sunk cost before operations begin
- 04MINORMinimum weekly royalty requirement structure (greater of 7% or minimum fee) could be unsustainable for underperforming locations and indicates franchisor revenue dependency
- 05MINOROnly 11 franchises operating makes unit economics and territory protection claims difficult to validate; high growth rate may not be sustainable
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.