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D70/100FDD 2026

Roof Scientist — Litigation & Risk

Home Services - Other · 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
70 / 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
North Carolina
State whose law governs disputes — relevant if you're not based there

What drove the 70/100 rating

Risk Score Breakdown

  1. 01MINOROnly 4 units in system with unknown growth trajectory indicates minimal scale and unproven replicability
  2. 02HIGHLitigation involving affiliate company (A1 Kitchen & Bath) alleging fraudulent misrepresentation and breach of contract suggests potential systemic issues with franchisor practices
  3. 03HIGHGoing Concern status is FALSE, signaling potential financial instability or uncertainty about the franchisor's viability
  4. 04MEDBlended royalty structure (7%-5% or minimum monthly fee) lacks transparency; minimum fee amount not disclosed, creating unknown ongoing cost burden
  5. 05MINORHigh investment range ($218k-$390k) combined with only 4 operating units provides insufficient data to validate ROI; average net income of $167k may not be achievable by new franchisees
  6. 06MINORNo Item 19 financial performance representations limits ability to validate claimed revenue and profit figures independently

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.