B55/100FDD 2026
Puroclean — Litigation & Risk
Cleaning - Commercial & Janitorial · FDD Items 3, 4 & 5
Elevated Risk
7 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
7
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
55 / 100
FranchiseVerdict composite
Rating
MODERATE
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
142
Government-backed loans issued
Default rate
16.7%
vs <3% typical · system-wide
5-yr default rate
10.0%
Defaults
8 loans
Loans charged off or defaulted
Total loan volume
$39.9M
Avg loan size
$281K
Participating lenders
48
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
Florida
State whose law governs disputes — relevant if you're not based there
What drove the 55/100 rating
Risk Score Breakdown
- 01MINORMinimal system growth (2.2% YoY) with 411 units suggests market saturation or retention issues in mature franchise
- 02MEDNo disclosed average net income despite $953k average revenue raises transparency concerns about actual profitability and franchisor accountability
- 03HIGHSeven litigation actions including three recent franchisor enforcement actions against franchisees indicate collection problems and potential relationship deterioration
- 04MINORTiered royalty structure (10% down to 3%) creates revenue pressure for newer/smaller franchisees paying maximum rates while established operators pay less
- 05MINOR20-year term length with $59k franchise fee + $101k-$262k startup cost represents significant long-term capital commitment with unclear profit visibility
- 06MINORSettlement with former franchisee over unpaid fees and employment disputes suggest franchisor operational or compliance issues
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.