FranchiseVerdict
Sam the Concrete Man logo
D72/100FDD 2025

Sam the Concrete Man — Litigation & Risk

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

Back to overview

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
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
95
Government-backed loans issued
Default rate
37.5%
vs <3% typical · system-wide
5-yr default rate
38.5%
Defaults
6 loans
Loans charged off or defaulted
Total loan volume
$13.8M
Avg loan size
$145K
Participating lenders
3

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

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot independently verify claimed $188.7K average net income
  2. 02HIGHGoing Concern status is FALSE — suggests franchisor may have undisclosed financial/operational challenges
  3. 03MINORSlow unit growth at 6.2% YoY with 88 units — indicates mature/saturated market or franchisee satisfaction issues
  4. 04MINORHigh franchise fee ($67K) relative to initial investment range creates cash-strapped franchisee risk
  5. 05MED6% royalty on gross revenue is aggressive for service business with ~18.6% net margins — leaves limited cushion

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.