FranchiseVerdict
RooterMan logo
A52/100FDD 2025

RooterMan — Litigation & Risk

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

Back to overview

Elevated Risk

15 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
15
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
52 / 100
FranchiseVerdict composite
Rating
STRONG
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
2
Government-backed loans issued
Default rate
100.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
2 loans
Loans charged off or defaulted
Total loan volume
$178K
Avg loan size
$89K
Participating lenders
2

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
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
Virginia
State whose law governs disputes — relevant if you're not based there

What drove the 52/100 rating

Risk Score Breakdown

  1. 01MEDSevere unit decline of 18.1% YoY indicates systemic franchisee failure and collapsing system momentum
  2. 02HIGHMultiple pending litigation cases with current and former franchisees regarding territory disputes and breach of contract suggest franchisor operational/enforcement problems
  3. 03MEDNo disclosed average revenue or net income (Item 19) prevents validation of franchise profitability claims and suggests franchisor may be hiding poor performance data
  4. 04MINORMulti-state governmental actions (MD, IL, VA, CA, WA) for registration and disclosure violations indicate franchisor compliance and transparency issues
  5. 05MINORUnique population-based royalty model ($3 per 1,000 residents) creates unpredictable costs and potential disputes over territory definitions and population calculations
  6. 06HIGHGoing concern notation raises questions about franchisor financial stability despite low franchise fee

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.