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D72/100FDD 2025

Valcourt Building Services — Litigation & Risk

Cleaning - Commercial & Janitorial · 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
72 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
1 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
No
Franchisor can match any purchase offer when you try to sell
Governing law
Virginia
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status is FALSE — indicates potential financial distress or operational instability at franchisor level
  2. 02MINORRoyalty structure is extreme and predatory (5%-95% range) — lacks transparency and creates unpredictable profit margins; 95% royalty is effectively a loss for franchisee
  3. 03MEDNo average revenue or net income disclosed — impossible to validate ROI or profitability; suggests franchisor hiding poor performer data
  4. 04MINORTerritory is completely unprotected — franchisees face direct competition from other franchisees and franchisor encroachment
  5. 05MEDOnly 37 units with unknown growth trajectory — small, potentially stagnating system with no disclosed unit growth or closure rates
  6. 06HIGHNo litigation disclosed but going concern risk suggests underlying legal/financial exposure not yet visible
  7. 07MINORVague work order-based royalty model creates misaligned incentives and potential franchisor-franchisee disputes over calculations

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.