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D72/100FDD 2025

Rubbish Works — Litigation & Risk

Home Services - Other · FDD Items 3, 4 & 5

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Elevated Risk

17 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
17
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
72 / 100
FranchiseVerdict composite
Rating
CAUTION
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
5
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$750K
Avg loan size
$150K
Participating lenders
1

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 72/100 rating

Risk Score Breakdown

  1. 01MINORSystem contraction of 33.3% YoY (4 units remaining) indicates severe franchisee attrition and loss of confidence
  2. 02MINORNo Item 19 (average revenue/net income) disclosure suggests either non-disclosure or performance below franchisor's willingness to share
  3. 03HIGHMultiple pending litigations involving affiliate brands (Window Gang, 360 Painting, Rooterman) and prior franchisee settlements indicate systemic operational or support issues
  4. 04MINORSEC consent orders in 5 states (MD, IL, VA, CA, WA) for disclosure failures demonstrate regulatory non-compliance and potential hidden material facts
  5. 05HIGHGoing concern status combined with shrinking unit base raises questions about franchisor's financial viability and ability to support franchisees
  6. 06MINOR$150/week minimum royalty ($7,800 annually) on top of 6% creates high fixed-cost burden vulnerable to revenue fluctuations in service business

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.