FranchiseVerdict
Waterloo Turf logo
A50/100FDD 2025

Waterloo Turf — Litigation & Risk

Home Services - Lawn & Landscaping · FDD Items 3, 4 & 5

Back to overview

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
50 / 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
1
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$350K
Avg loan size
$350K
Participating lenders
1

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

What drove the 50/100 rating

Risk Score Breakdown

  1. 01MINOROnly 5 units system-wide with unknown growth trajectory indicates minimal scale and unproven replicability
  2. 02MINORNo territorial protection leaves franchisees vulnerable to direct competition from same franchisor or encroachment
  3. 03MINORHigh franchise fee ($59,000) represents 55% of minimum total investment, creating significant upfront capital risk with small support network
  4. 04MINORRoyalty burden of 6% on claimed $1.05M average revenue ($63K annually) coupled with unverified Item 19 financials
  5. 05MINORMicro-franchise size (5 units) raises questions about franchisor viability, support infrastructure, and whether financial claims are accurate across diverse markets

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.