D77/100FDD 2026
Whole Property Management — Litigation & Risk
Other · FDD Items 3, 4 & 5
Elevated Risk
10 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
10
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
77 / 100
FranchiseVerdict composite
Rating
CAUTION
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
234
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
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 77/100 rating
Risk Score Breakdown
- 01HIGHGoing concern warning indicates fundamental viability questions about the franchisor
- 02HIGHSignificant litigation against CEO and parent company involving fraud and breach of fiduciary duty allegations creates governance and trust concerns
- 03MEDZero disclosed franchise units with unknown growth trajectory suggests either brand collapse or complete lack of track record
- 04MEDMissing critical financial disclosures (average revenue, net income, royalty rate) prevents informed ROI analysis
- 05MINORHigh franchise fee ($100,000) combined with investment range up to $320,400 represents substantial capital at risk with no performance benchmarks
- 06MINORConsent order from California Department of Financial Protection and Innovation indicates prior regulatory violation
- 07MINORNo Item 19 financial performance representation limits ability to validate earnings claims
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.