B65/100FDD 2025
The Brothers that just do Gutters — Litigation & Risk
Cleaning - Commercial & Janitorial · FDD Items 3, 4 & 5
Moderate — Review
5 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
5
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
65 / 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
76
Government-backed loans issued
Default rate
21.4%
vs <3% typical · system-wide
5-yr default rate
21.4%
Defaults
3 loans
Loans charged off or defaulted
Total loan volume
$13.9M
Avg loan size
$182K
Participating lenders
20
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
Arizona
State whose law governs disputes — relevant if you're not based there
What drove the 65/100 rating
Risk Score Breakdown
- 01MINORUnit count declining 6.5% YoY (101 units) suggests system contraction and potential market saturation or franchisee dissatisfaction
- 02HIGHLitigation history across multiple affiliated brands (Executive Home Care, Assisted Living Locators) indicates pattern of legal disputes around non-compete and trademark enforcement—raises questions about franchisor governance
- 03MINOR2016 Virginia unregistered sales settlement suggests past compliance issues with state regulations
- 04MINORRoyalty structure with minimum weekly fee requirement creates fixed costs regardless of revenue—problematic for seasonal gutter business with weather-dependent demand
- 05MEDNo Item 19 (financial performance representations) disclosed—cannot independently verify claimed $1.2M avg revenue or $326K net income figures
- 06MINORRelatively high initial investment range ($143K–$510K) combined with declining unit growth increases franchisee risk
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.