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D72/100FDD 2025

Worried Bird — Litigation & Risk

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

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Elevated Risk

13 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
13
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
72 / 100
FranchiseVerdict composite
Rating
CAUTION
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
No
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Delaware
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MINORSystem declining sharply: -20% unit contraction YoY (4 units remaining) indicates severe market rejection or operational failure
  2. 02MEDNo financial transparency: Average revenue and net income not disclosed—impossible to validate ROI on $91-125K investment + $49K fee
  3. 03HIGHLitigation pattern across affiliate brands: Multiple pending lawsuits involving contract breach, misrepresentation, and regulatory violations suggest systemic corporate governance issues
  4. 04HIGHGoing Concern status is FALSE: Franchisor may face viability challenges that impact ongoing support and franchise value
  5. 05MINORHigh royalty burden with unknown profitability: 7% weekly gross revenue extraction cannot be evaluated without Item 19 financials
  6. 06MINORAggressive initial investment relative to system size: $49K franchise fee + $91-125K startup for a 4-unit system raises sustainability questions

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.