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F90/100FDD 2024

Vizta Tint — Litigation & Risk

Home Services - Other · FDD Items 3, 4 & 5

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Elevated Risk

19 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
19
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
90 / 100
FranchiseVerdict composite
Rating
AVOID
STRONG / MODERATE / CAUTION / AVOID

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

What drove the 90/100 rating

Risk Score Breakdown

  1. 01HIGHCEO has 1999 felony conviction for conspiracy to commit credit card fraud — demonstrates history of financial crime and dishonesty
  2. 02HIGHMultiple lawsuits across affiliated franchise brands (Clozetivity, Dryer Vent Squad, Frost Shades, Patch Boys) alleging fraud and breach of duty — pattern of misconduct suggests systemic issues
  3. 03HIGHGoing Concern status is FALSE — indicates the franchisor may lack financial stability or viability
  4. 04MINORZero franchise units reported with unknown growth trajectory — no proof of concept or successful franchisee track record
  5. 05MEDAverage revenue and net income not disclosed — inability or unwillingness to provide Item 19 financial performance representations is a major transparency red flag
  6. 06MINORAdministrative actions in MD, MN, and NY — regulatory bodies have taken action, suggesting compliance failures or consumer protection violations
  7. 07MEDHigh initial investment ($58,650–$119,800) with 7% royalty floor but no disclosed average unit volumes to justify ROI
  8. 08HIGHLitigation involving 'former business associates and franchisees of affiliates' — suggests franchisor or principals have disputes with people who know them best

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.