![Spaulding Decon logo](https://cdn.brandfetch.io/spauldingdecon.com/w/128/h/128/fallback/lettermark?c=<img src="https://cdn.brandfetch.io/domain/apple.com?c=1idsvcTjLv919Ax0E2s" alt="Logo by Brandfetch" />){kind=small}
B61/100FDD 2024
Spaulding Decon — Litigation & Risk
Cleaning - Commercial & Janitorial · FDD Items 3, 4 & 5
Elevated Risk
6 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
6
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
61 / 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
11
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
$1.5M
Avg loan size
$140K
Participating lenders
2
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
Not waived
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
Florida
State whose law governs disputes — relevant if you're not based there
What drove the 61/100 rating
Risk Score Breakdown
- 01MINORSystem collapsed 65.9% YoY (14 units remaining) — indicates severe franchisee failure or franchisor operational failure
- 02HIGHMultiple active litigation cases alleging fraudulent inducement, misrepresentation, and breach — suggests systemic franchisor credibility issues
- 03MEDNo Item 19 financial disclosures (Avg Revenue/Net Income not disclosed) — prevents validation of profitability claims and income potential
- 04HIGHGoing Concern flag indicates franchisor financial viability risk despite continued unit recruitment
- 05MEDMinimum Royalty structure undisclosed — franchisees may owe substantial royalties even with low/zero sales
- 06MINOR$49,500 franchise fee + $162,510–$204,550 total investment with unproven ROI in declining system
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.