B58/100FDD 2025
U.S. Lawns — Litigation & Risk
Home Services - Lawn & Landscaping · FDD Items 3, 4 & 5
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
58 / 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
65
Government-backed loans issued
Default rate
19.4%
vs <3% typical · system-wide
5-yr default rate
33.3%
Defaults
7 loans
Loans charged off or defaulted
Total loan volume
$26.8M
Avg loan size
$413K
Participating lenders
34
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
Florida
State whose law governs disputes — relevant if you're not based there
What drove the 58/100 rating
Risk Score Breakdown
- 01MINORSystem stagnation: Only 1.0% YoY unit growth over 210 locations indicates mature/declining system with minimal expansion
- 02MEDNo Item 19 financial disclosure: Average net income not disclosed prevents accurate ROI validation and suggests weak franchisee profitability
- 03MINORHigh initial investment-to-average-revenue ratio: $71,500-$200,000 investment against $1.39M average revenue raises questions about capital efficiency and payback period
- 04MINORSeasonal business model risk: Landscaping/lawn care is highly weather and seasonality dependent with cash flow volatility
- 05MINORCompetitive intensity: Low barriers to entry in lawn care market create pricing pressure and customer acquisition challenges
- 06MINORRoyalty structure concern: Sliding scale rewards scale but 6% on lower volumes erodes margins for struggling locations
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.