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B72/100FDD 2025

Summit Building Services — Litigation & Risk

Cleaning - Commercial & Janitorial · 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
72 / 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
Ohio
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MEDOnly 4 units in system indicates minimal scale, unproven franchise model, and extremely limited growth trajectory
  2. 02MEDNo Item 19 (financial performance representations) disclosed — cannot verify if $71,975.80 average revenue per unit is realistic or sustainable
  3. 03MEDNet income not disclosed — inability to assess actual profitability after the 7-9% royalty burden and operating costs
  4. 04MINORUnprotected territory creates direct competition risk; franchisees may cannibalize each other's markets
  5. 05HIGHGoing Concern status is False (uncertain), suggesting potential financial instability at franchisor level
  6. 06MINOR5-year term is relatively short, creating renewal/relocation uncertainty and limiting franchisee equity building
  7. 07MEDNo disclosed growth data for existing 4 units raises questions about system viability and unit economics

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.