Skip to main content
FranchiseVerdict
Steamatic logo
DBelow average35/100FDD 2025

Steamatic: Litigation & Risk

Cleaning & Maintenance · FDD Items 3, 4 & 5

Back to overview

Moderate: Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
None
Franchisor or officer bankruptcy
Verdict score
35 / 100
FranchiseVerdict composite · higher is better
Rating
D
A / B / C / D / F verdict grade

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Charge-off rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
43
Government-backed loans issued
Charge-off rate
23.3%
vs 16% franchise average
5-yr charge-off rate
0.0%
Defaults
7 loans
Loans charged off or defaulted
Total loan volume
$8.6M
Avg loan size
$200K
Participating lenders
21

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
Texas
State whose law governs disputes. Relevant if you're not based there

Extracted from FDD Item 3

Litigation Detail

0 case reference(s): 0 pending, 1 settled.

What drove the 35/100 verdict

Risk Score Breakdown

  1. 01HIGHOne litigation matter (settled, dismissed with prejudice)
  2. 02MINORNo Item 19 disclosure
  3. 03MEDFranchisor-level net worth not disclosed
  4. 04MINORTurnover 9.76% (healthy)

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.