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A52/100FDD 2026

Weathersby Guild — Litigation & Risk

Cleaning - Commercial & Janitorial · FDD Items 3, 4 & 5

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
52 / 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
100.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$351K
Avg loan size
$351K
Participating lenders
1

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

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
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
Georgia
State whose law governs disputes — relevant if you're not based there

What drove the 52/100 rating

Risk Score Breakdown

  1. 01HIGHGoing concern warning indicates potential financial distress or viability concerns at franchisor level
  2. 02MINORUnit count declining 7.4% YoY suggests franchisees are struggling or exiting the system
  3. 03MINORNo Item 19 (average revenue/net income) disclosure prevents assessment of unit profitability
  4. 04MINORPrior regulatory violation (2015) for unregistered franchise sales indicates compliance/governance issues
  5. 05MEDHigh initial investment ($49,000 franchise fee + $71,590-$98,130 total) combined with unit decline raises ROI concerns
  6. 06MED7% royalty on undisclosed revenue means true cost burden cannot be calculated
  7. 07MINOR50-unit system is small and vulnerable; declining trajectory suggests loss of momentum

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.