A50/100FDD 2026
The Maids — Litigation & Risk
Cleaning - Commercial & Janitorial · FDD Items 3, 4 & 5
Moderate — Review
4 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
4
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
50 / 100
FranchiseVerdict composite
Rating
STRONG
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
58
Government-backed loans issued
Default rate
10.7%
vs <3% typical · system-wide
5-yr default rate
66.7%
Defaults
3 loans
Loans charged off or defaulted
Total loan volume
$17.5M
Avg loan size
$302K
Participating lenders
31
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
1.5 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
Texas
State whose law governs disputes — relevant if you're not based there
What drove the 50/100 rating
Risk Score Breakdown
- 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot independently verify $220k avg net income claim
- 02MINORFour active lawsuits against franchisees for breach, non-compete, and trademark violations suggest enforcement issues or franchisee dissatisfaction
- 03MINORUnknown unit growth trajectory — 369 units may be stagnant or declining; no growth rate transparency
- 04MINORRoyalty structure (6.9% down to 3.9%) indicates potential margin compression for mature units
- 05MEDHigh initial investment ($117.7k–$141.2k) relative to disclosed average net income ($220k) yields modest 1.5–1.9 year payback with no buffer for underperformance
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.