B70/100FDD 2025
Stone Environmental Services™ — Litigation & Risk
Other · FDD Items 3, 4 & 5
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
70 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID
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
Florida
State whose law governs disputes — relevant if you're not based there
What drove the 70/100 rating
Risk Score Breakdown
- 01MINOROnly 1 franchised unit indicates system has never scaled or is collapsing; no growth trajectory data available
- 02HIGHGoing Concern = FALSE signals potential franchisor financial instability or inability to support franchisees long-term
- 03MEDNo Item 19 (Average Unit Volume) disclosed despite $921k claimed average revenue—suggests data may be cherry-picked or unreliable
- 04MINORHigh initial investment ($150k-$260k) creates significant risk with unproven single-unit system and no peer performance validation
- 05MINOR7% royalty on claimed $921k average = $64,500/year to franchisor, but sustainability unclear with only 1 operating unit
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.