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B59/100FDD 2025

Two Maids — Litigation & Risk

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

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
59 / 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
70
Government-backed loans issued
Default rate
22.2%
vs <3% typical · system-wide
5-yr default rate
20.0%
Defaults
2 loans
Loans charged off or defaulted
Total loan volume
$11.6M
Avg loan size
$166K
Participating lenders
13

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
Alabama
State whose law governs disputes — relevant if you're not based there

What drove the 59/100 rating

Risk Score Breakdown

  1. 01MEDNet income not disclosed in FDD — cannot validate true profitability despite $580K average revenue claim
  2. 02HIGHHistorical litigation involving franchisor (Aussie Pet Mobile) for Maryland Franchise Law compliance raises regulatory/disclosure concerns
  3. 03MINORBlended royalty structure (7.0%-4.0%) creates revenue uncertainty and potential cash flow pressure for newer franchisees at higher tiers
  4. 04MINOR144 units with 22% YoY growth suggests strong expansion but lacks multi-year stability data and unit economics transparency
  5. 05MEDHigh initial investment ($93K-$150K) relative to disclosed revenue lacks corresponding net income disclosure for ROI validation

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.