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B59/100FDD 2026

Steri-Clean — Litigation & Risk

Other · FDD Items 3, 4 & 5

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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
59 / 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
6
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
$1.2M
Avg loan size
$193K
Participating lenders
6

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

What drove the 59/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 financial disclosures (avg revenue/net income) prevents ROI validation on $88.8K-$265.6K investment
  2. 02HIGHSix documented litigations including active fraud/misrepresentation arbitration and prior wrongful termination claims indicate systemic franchisor-franchisee disputes
  3. 03MINORAggressive tiered royalty structure (8% down to 6%) with $200 weekly minimum creates unpredictable expense ratios; franchisees under $8K weekly sales pay disproportionate percentage
  4. 04MINOR19.6% YoY unit growth masks small absolute base (55 units); insufficient data to confirm sustainability or rule out churn
  5. 05MEDHigh franchise fee ($60K) combined with wide investment range ($88.8K-$265.6K) suggests significant variable startup costs with no disclosed break-even timeline
  6. 06HIGHLitigation pattern includes trademark infringement and breach of contract claims, raising questions about franchisor operational competency and legal clarity

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.