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A45/100FDD 2026

SpringGreen — Litigation & Risk

Home Services - Pest Control · FDD Items 3, 4 & 5

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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
45 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID

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

What drove the 45/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 (Average Unit Volume) disclosed — inability to verify if $112K average revenue translates to profitability
  2. 02MED156 units with unknown growth trajectory — lack of transparency on system momentum or decline
  3. 03HIGHGoing Concern status is FALSE (assumed meaning franchisor may have solvency concerns or recent instability)
  4. 04MEDHigh initial investment ($118K-$135K) against undisclosed net income creates unfavorable risk-reward profile
  5. 05MINORSliding royalty scale (10%-8%) on $112K average revenue could consume 8-10% of gross sales, leaving thin margins if net income is low

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.