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B55/100FDD 2025

Quality Pro Services — Litigation & Risk

Home Services - Plumbing & HVAC · FDD Items 3, 4 & 5

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
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

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

What drove the 55/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 franchisee unit with unknown growth trajectory indicates system is either pre-revenue or experiencing severe contraction
  2. 02HIGHGoing Concern status is FALSE — franchisor may be financially unstable or facing operational viability questions
  3. 03MEDNet income not disclosed — inability or unwillingness to provide Item 19 financial performance representation raises transparency concerns
  4. 04HIGHLitigation involving co-owner (settled for $90K in 2021) suggests internal governance issues and employee/representative disputes
  5. 05MINORHigh franchise fee ($60K) relative to single operating unit suggests aggressive fundraising despite lack of proven system scalability
  6. 06MEDNo disclosed unit growth data — cannot verify franchisor's ability to recruit, train, or support additional franchisees

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.