B66/100FDD 2024
ReUp Living — Litigation & Risk
Home Services - Other · FDD Items 3, 4 & 5
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
66 / 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
Texas
State whose law governs disputes — relevant if you're not based there
What drove the 66/100 rating
Risk Score Breakdown
- 01MINORExtreme royalty rate of 35% leaves minimal margin for profitability given $154k avg revenue
- 02MEDNet income not disclosed in FDD — inability to verify franchisee profitability is a major red flag
- 03HIGHGoing Concern status = franchisor may lack financial stability to support franchisees
- 04MINOROnly 11 units with 233% YoY growth suggests very recent launch (likely under 2 years old) with unproven model
- 05MINORUnprotected territory creates direct competition risk and customer poaching by other franchisees
- 06HIGHHigh initial investment ($84k-$162k) paired with no income disclosure and going concern status
- 07MED5-year term with no territory protection and undisclosed profitability is extremely risky
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.