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
75 / 100
FranchiseVerdict composite
Rating
CAUTION
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
54
Government-backed loans issued
Default rate
25.0%
vs <3% typical · system-wide
5-yr default rate
25.0%
Defaults
5 loans
Loans charged off or defaulted
Total loan volume
$9.3M
Avg loan size
$172K
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
Maryland
State whose law governs disputes — relevant if you're not based there
What drove the 75/100 rating
Risk Score Breakdown
- 01MEDNet Income not disclosed in FDD Item 19 — cannot validate profitability claims or ROI timeline
- 02MINORWide investment range ($96K–$339K) suggests inconsistent startup costs and unclear value proposition
- 03MINOR17.4% YoY unit growth is modest for a franchise in growth phase; slower than industry junk removal benchmarks
- 04MINORAnnual Minimum Royalty fee structure not specified — franchisees could owe significant fees even in low-revenue months
- 05MINORHigh franchise fee ($50K) relative to lower end of total investment suggests aggressive upfront capture
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.