B58/100FDD 2025
Screenmobile — Litigation & Risk
Home Services - Other · FDD Items 3, 4 & 5
Moderate — Review
2 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
58 / 100
FranchiseVerdict composite
Rating
MODERATE
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
34
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
$8.2M
Avg loan size
$241K
Participating lenders
15
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
Maryland
State whose law governs disputes — relevant if you're not based there
What drove the 58/100 rating
Risk Score Breakdown
- 01MEDSystem contracting sharply: -7.6% unit decline YoY signals franchisee dissatisfaction or market saturation
- 02HIGHGoing Concern status is FALSE: franchisor may face financial instability or operational challenges
- 03MEDNet income not disclosed in Item 19: inability to validate actual profitability claims against $477K avg revenue
- 04HIGHActive litigation on trademark/non-compete enforcement: indicates franchisor-franchisee relationship tension and IP protection gaps
- 05MINORHigh royalty burden: 7% on $477K revenue = $33.4K annually, plus minimum fees create cash flow pressure during market downturns
- 06MINORModest investment ROI unclear: $144-206K initial cost requires ~3-4 years to break even if net margins are <15%
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.