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D75/100FDD 2025

Rubber Ducky — Litigation & Risk

Cleaning - Commercial & Janitorial · FDD Items 3, 4 & 5

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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
75 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

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

What drove the 75/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status is FALSE — indicates potential financial distress or operational instability at franchisor level
  2. 02MINORZero existing franchise units with unknown growth trajectory — no proven system, no franchisee track record to validate
  3. 03MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) — impossible to assess actual franchisee profitability against $45,000 franchise fee and 8% royalty burden
  4. 04MINORWide investment range ($75,850–$524,300) suggests undefined business model or inconsistent unit economics
  5. 05MEDHigh 8% royalty on undisclosed revenue — combined with unknown profitability, creates acute cash flow risk for franchisees
  6. 06MINORNo existing units means no franchisee references available — cannot validate claims or gather real-world performance data

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.