FranchiseVerdict
Tons of Bubbles Laundromat logo
B65/100FDD 2026

Tons of Bubbles Laundromat — Litigation & Risk

Cleaning - Commercial & Janitorial · FDD Items 3, 4 & 5

Back to overview

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
65 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

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 65/100 rating

Risk Score Breakdown

  1. 01MINORNo average revenue or net income disclosure (Item 19) prevents ROI assessment and profitability validation
  2. 02MEDOnly 4 units operating with unknown growth trajectory suggests limited system traction and unproven scalability
  3. 03MINORWide investment range ($833,800–$1,968,800) indicates unclear cost structure and potential for cost overruns
  4. 04MINORDual royalty structure (6.5% of sales OR $867/month minimum) may create cash flow pressure for lower-revenue locations
  5. 05HIGHNo 'going concern' flag is positive, but combined with minimal unit count raises sustainability questions
  6. 06MINORHigh absolute franchise fee ($40,000) relative to tiny 4-unit system suggests fees subsidize franchisor operations rather than support

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.