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A28/100FDD 2026

Property Management Incorporated (PMI) — Litigation & Risk

Real Estate · 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
28 / 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
234
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
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
Wyoming
State whose law governs disputes — relevant if you're not based there

What drove the 28/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status indicates potential financial distress or uncertainty at franchisor level
  2. 02MINORStagnant unit growth (1.0% YoY) across 408 units suggests market saturation or franchisee dissatisfaction
  3. 03MINORNo Average Net Income disclosure prevents accurate ROI analysis despite $643k average revenue
  4. 04MINORComplex tiered royalty structure (5% brokerage + 7-5% gross revenue) creates unpredictable cost burdens
  5. 05MINORUnprotected territory exposes franchisees to direct competition from other PMI units
  6. 06MINORHigh franchise fee ($69,900) combined with opaque profitability creates elevated financial risk

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.