FranchiseVerdict
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D73/100FDD 2022

PureOne Services — Litigation & Risk

Automotive - Repair & Service · 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
73 / 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
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
Georgia
State whose law governs disputes — relevant if you're not based there

What drove the 73/100 rating

Risk Score Breakdown

  1. 01MINOROnly 6 units in system with unknown growth trajectory — suggests early-stage or stagnant franchise
  2. 02MEDNo average revenue or net income disclosed — impossible to validate ROI claims or benchmark performance
  3. 03HIGHGoing concern status is FALSE — indicates potential financial instability at franchisor level
  4. 04MINOR$0 franchise fee combined with high ongoing royalties (4.5-7% + 3%) suggests aggressive revenue extraction model
  5. 05MINORDual royalty structure (percentage of gross + $1,000/month alternative) creates ambiguity and potential disputes
  6. 06MINOR10-year term is unusually long without proven unit economics or franchisee success data
  7. 07HIGHNo litigation disclosed but going concern issue raises questions about franchisor transparency and disclosure completeness

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.