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Moderate — Review
3 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
3
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
73 / 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
22
Government-backed loans issued
Default rate
22.2%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
2 loans
Loans charged off or defaulted
Total loan volume
$8.1M
Avg loan size
$368K
Participating lenders
9
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
Texas
State whose law governs disputes — relevant if you're not based there
What drove the 73/100 rating
Risk Score Breakdown
- 01MEDNo Item 19 (Average Net Income) disclosed — cannot validate $45k-$137k investment ROI claims
- 02MINORLow average revenue ($4,633) suggests either very new units, part-time operations, or significant underperformance relative to investment size
- 03HIGHMultiple litigation actions across affiliate brands (Window Genie, Molly Maid) indicate systemic compliance and operational issues within parent company
- 04MEDHigh franchise fee ($69,500) relative to disclosed average revenue creates unfavorable risk-reward ratio
- 05MINOR12.3% YoY unit growth is modest for a brand claiming to be established; suggests market saturation or franchisee satisfaction concerns
- 06MINOR5-7% royalty on low revenue base may create cash flow pressure for franchisees
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.