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B58/100FDD 2025

Wow 1 Day Painting — Litigation & Risk

Home Services - Painting · 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
58 / 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
16
Government-backed loans issued
Default rate
16.7%
vs <3% typical · system-wide
5-yr default rate
33.3%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$1.6M
Avg loan size
$102K
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
Non-compete
1.5 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
Delaware
State whose law governs disputes — relevant if you're not based there

What drove the 58/100 rating

Risk Score Breakdown

  1. 01MINORUnit count declining 4.3% YoY (44 units) indicates system contraction and potential saturation or franchisee satisfaction issues
  2. 02MEDNet income not disclosed in Item 19 prevents ROI validation; $481k avg revenue unclear if sustainable or achievable by new franchisees
  3. 03HIGHLitigation history (DiNardo case) shows willingness to litigate; dismissal doesn't eliminate reputational/operational risk or indicate systemic compliance problems
  4. 04HIGHGoing Concern status = FALSE suggests financial instability at franchisor level, raising questions about support infrastructure and longevity
  5. 05MINOR5-year term is relatively short; rebuilding after year 3-4 struggles may be difficult before renewal decision
  6. 06MINORHigh initial investment range ($92k-$182k) with 6% royalty on top of all costs creates tight margin if avg revenue doesn't materialize

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.