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B65/100FDD 2024

Wallaby Windows — Litigation & Risk

Home Services - 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
65 / 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
9
Government-backed loans issued
Default rate
33.3%
vs <3% typical · system-wide
5-yr default rate
33.3%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$1.9M
Avg loan size
$207K
Participating lenders
5

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

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot validate the $371,235 avg net income claim independently
  2. 02MINORUnknown unit growth trajectory — 48 units provides no visibility into system expansion or contraction trends
  3. 03MINORMinimum royalty structure (post-month 7) is vague — 'greater of 5% or Minimum Royalty' amount not specified, creating unpredictable cost burden
  4. 04MINORHigh investment-to-net-income ratio — $158k-$242k investment against $371k avg net income means 42-65% of first-year profits consumed by capital recovery, plus ongoing 5% royalties
  5. 05HIGHNo litigation disclosure but 'Going Concern' flagged as False — suggests either undisclosed legal issues or financial instability concerns in FDD
  6. 06MINORFranchise fee of $49,500 (31% of minimum investment) is on the higher end for home improvement category

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.