F81/100FDD 2022
Tailored Living — Litigation & Risk
Home Services - Other · FDD Items 3, 4 & 5
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)
—
Franchisor or officer bankruptcy
Overall risk score
81 / 100
FranchiseVerdict composite
Rating
AVOID
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
30
Government-backed loans issued
Default rate
20.0%
vs <3% typical · system-wide
5-yr default rate
33.3%
Defaults
3 loans
Loans charged off or defaulted
Total loan volume
$6.4M
Avg loan size
$212K
Participating lenders
14
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
California
State whose law governs disputes — relevant if you're not based there
What drove the 81/100 rating
Risk Score Breakdown
- 01MEDNo Item 19 (Average Net Income) disclosed — impossible to validate ROI claims or profitability benchmarks
- 02MINORSlow unit growth (5.8% YoY) suggests market saturation or franchisee satisfaction issues in a mature 164-unit system
- 03HIGH2006 litigation by affiliate (Aussie Pet Mobile) for Maryland Franchise Law violations indicates potential regulatory compliance patterns in parent organization
- 04MINORHigh initial investment ($185K–$299K) paired with unclear profit margins creates significant downside risk
- 05MINORFlat monthly royalty structure ($300–$2,000) lacks transparency on performance thresholds — how is tier determined?
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.