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F79/100FDD 2025

Prolift Garage Doors — Litigation & Risk

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

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Elevated Risk

17 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
17
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
79 / 100
FranchiseVerdict composite
Rating
AVOID
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
62
Government-backed loans issued
Default rate
52.6%
vs <3% typical · system-wide
5-yr default rate
50.0%
Defaults
10 loans
Loans charged off or defaulted
Total loan volume
$9.0M
Avg loan size
$145K
Participating lenders
10

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

What drove the 79/100 rating

Risk Score Breakdown

  1. 01MINOR25.5% unit contraction year-over-year indicates systemic franchisee failure or departure
  2. 02HIGH17 active legal actions including fraud allegations and multiple state consent orders for disclosure violations suggest corporate compliance failures
  3. 03MEDNet income not disclosed despite $454K average revenue—inability or unwillingness to provide Item 19 financial performance suggests poor profitability or hidden liabilities
  4. 04HIGHGoing Concern status = FALSE indicates franchisor financial instability or solvency concerns
  5. 05HIGHHigh litigation involving breach of contract and prior franchisee settlements suggests adversarial franchisor-franchisee relationships
  6. 06MINORRoyalty structure ($150/week minimum = $7,800 annually) creates high fixed costs on declining unit base, pressuring franchisor viability
  7. 07MINORMultiple state consent orders (MD, IL, VA, CA, WA) indicate pattern of franchise law violations across jurisdictions

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.