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A46/100FDD 2024

TWS Temporary Wall Systems — Litigation & Risk

Other · FDD Items 3, 4 & 5

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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
46 / 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
159
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

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

What drove the 46/100 rating

Risk Score Breakdown

  1. 01MINORUnprotected territory creates direct competition risk with other franchisees and company-owned locations
  2. 02MINORExtreme unit growth (1000% YoY) suggests either new brand launch instability or unsustainable expansion; difficult to validate true performance
  3. 03MINORHigh royalty floor (greater of 8% or minimum monthly fee) provides no relief during revenue downturns, impacting cash flow
  4. 04MINORInvestment range spans 138% ($153k-$366k) indicating high variability in startup costs and unclear build-out requirements
  5. 05MEDNo Item 19 financial performance representations limits ability to verify the disclosed $801k average net income claim
  6. 06MINOR10-year term is longer than industry standard (5-7 years typical), locking franchisee into relationship with unproven brand

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.