Tailored Living: Litigation & Risk
Home Services · FDD Items 3, 4 & 5
Elevated Risk
1 case disclosed in FDD Items 3 and 4. Bankruptcy disclosed in Item 4.
FDD Items 3 & 4
Litigation Metrics
- Cases disclosed
- 1
- Total from FDD Items 3 and 4
- Bankruptcy (Item 4)
- Disclosed
- Franchisor or officer bankruptcy
- Verdict score
- 40 / 100
- FranchiseVerdict composite · higher is better
- Rating
- C
- 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
- 37
- Government-backed loans issued
- Charge-off rate
- 28.6%
- vs 16% franchise average
- 5-yr charge-off rate
- 16.7%
- Defaults
- 6 loans
- Loans charged off or defaulted
- Total loan volume
- $8.1M
- Avg loan size
- $218K
- Participating lenders
- 17
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
Extracted from FDD Item 3
Litigation Detail
Administrative proceeding before Securities Commissioner of Maryland (Case No. 2004-0162). Aussie Pet Mobile entered into Consent Order on January 25, 2006 with Maryland Attorney General Securities Division requiring cease and desist from certain actions, rescission of franchise agreements with one franchisee, and implementation of new franchise law compliance procedures. No monetary sanctions.
What drove the 40/100 verdict
Risk Score Breakdown
- 01MINOROld 2006 affiliate consent order (prior ownership)
- 02HIGH2014 discharged personal bankruptcy of a VP (low weight)
- 03MINORPositive net worth $9.16M, net income $174,751
- 04MEDUnit growth +2.5%, Item 19 disclosed
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.