A44/100FDD 2025
United Water Restoration Group — Litigation & Risk
Cleaning - Commercial & Janitorial · 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
44 / 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
27
Government-backed loans issued
Default rate
11.1%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$8.9M
Avg loan size
$330K
Participating lenders
11
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 44/100 rating
Risk Score Breakdown
- 01MEDNet income not disclosed in FDD Item 19 — inability to verify profit claims against $1.9M average revenue
- 02MINORHigh initial investment range ($222K-$700K) with wide variance suggests inconsistent territory valuations
- 03MINORRapid unit growth (18.2% YoY) may indicate unsustainable recruitment over organic profitability
- 04MINORDual royalty structure (6% restoration vs. 2% reconstruction) creates complexity and potential revenue recognition disputes
- 05MINOR10-year term is longer than industry standard (5-7 years), limiting franchisee exit flexibility
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.