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Coopers Scoopers

Coopers Scoopers LLC
https://www.coopersscoopers.com
1-866-317-2667
780 Lynnhaven Pkwy Suite 240, Virginia Beach, VA 23452

Initial Investment Range

$159,650 to $320,400

Franchise Fee

$150,000 to $300,000

We offer you a franchise opportunity as an Area Representative within a designated territory to solicit, recruit, and support Cooper’s Scoopers Unit Franchisees that offer a pet waste removal and management service.

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Coopers Scoopers January 23, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: July 16, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
4
1
5

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The financial statements for Coopers Scoopers LLC (CSL) are for a one-week period, showing only a $5,000 cash balance. As a new entity with no operating history or revenue streams beyond franchise sales, it appears entirely dependent on these sales to fund operations and support obligations. This presents a significant risk regarding its ability to support you or even remain solvent if franchise sales are slow.

Potential Mitigations

  • Your accountant must review the financials and assess the franchisor's capitalization and burn rate.
  • A business advisor can help you evaluate the risk of investing in a startup with no operational cash flow.
  • Inquire with your attorney about any state-mandated financial assurances like bonds or escrow accounts.
Citations: Item 21, Exhibit G

High Franchisee Turnover

Low Risk

Explanation

As a new franchise system that only began offering franchises in January 2025, there is no history of franchisee turnover to analyze in Item 20. While this specific risk is not present, the complete lack of operating history and data on franchisee success or failure presents a broader, more fundamental business risk.

Potential Mitigations

  • A business advisor can help you understand the inherent risks of joining a new system with no performance track record.
  • It is wise to discuss the lack of historical data with your accountant when creating financial projections.
  • Your attorney should review the agreement for any protections that might compensate for this higher level of uncertainty.
Citations: Item 20

Rapid System Growth

Low Risk

Explanation

This risk was not identified in the disclosure document. Rapid system growth can sometimes strain a franchisor's ability to provide adequate support to all franchisees. It is a factor to monitor in any franchise system you consider joining.

Potential Mitigations

  • A discussion with your business advisor can help you gauge if a franchisor's support infrastructure is keeping pace with its growth.
  • When speaking with existing franchisees, it is useful to ask about the quality and timeliness of support.
  • An accountant can help review the franchisor's financial statements to see if they are reinvesting in support systems.
Citations: Item 20

New/Unproven Franchise System

High Risk

Explanation

CSL is a new company, formed in late 2024 and beginning to offer franchises in January 2025. It has no operating history, has sold no franchises, and has no existing Area Representatives to contact for due diligence. This lack of a proven track record, established brand recognition, or tested support systems presents a substantial risk to your investment.

Potential Mitigations

  • Engage a business advisor to perform deep due diligence on the management team's prior experience in this industry and in franchising.
  • An accountant should help you develop highly conservative financial models, as there is no historical data.
  • Your attorney might seek to negotiate more favorable contract terms to compensate for the elevated risk of a startup.
Citations: Items 1, 20, 21, Exhibit G

Possible Fad Business

Low Risk

Explanation

This risk was not identified. The business of pet waste removal is an established service industry. However, you should independently assess the long-term demand and competitive landscape in your specific geographic market to ensure the business model is sustainable beyond any current trends.

Potential Mitigations

  • A business advisor can assist in researching the long-term market viability of the specific services offered.
  • Assessing the franchisor's plans for innovation and adaptation is a crucial topic for discussion.
  • Your financial advisor can help evaluate the business model's resilience to economic shifts.
Citations: Item 1

Inexperienced Management

Medium Risk

Explanation

The management team has experience in franchising with affiliated brands and in the pet industry. However, CSL itself is a brand new entity with no track record of operating this specific business or supporting Area Representatives for it. There is a risk that combining these different experiences into a new venture may not translate into effective support and a successful system.

Potential Mitigations

  • Engage a business advisor to thoroughly vet the specific and relevant experience of each key manager.
  • Discuss the management team's specific plan for supporting this new brand with them directly.
  • Question the franchisor about how they will leverage their affiliate experience to avoid common startup pitfalls.
Citations: Item 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the disclosure document, as there is no disclosure of private equity ownership in Item 1. It is important in any franchise review to understand the ownership structure, as it can influence the franchisor's long-term goals and operational priorities.

Potential Mitigations

  • Your attorney can help you understand the franchisor's ownership structure as detailed in Item 1.
  • A business advisor can assist in researching the owners and their track record with other ventures.
  • When speaking to existing franchisees of a system, asking about changes since any ownership transition is wise.
Citations: Not applicable

Non-Disclosure of Parent Company

High Risk

Explanation

The FDD discloses that Loyalty, LLC is the parent company. However, the financials provided are only for CSL, the newly formed, thinly capitalized subsidiary. The parent company's financials are not included. Without them, it is impossible to assess the overall financial strength and stability of the organization that ultimately controls the franchise system, presenting a significant risk.

Potential Mitigations

  • Your accountant should carefully analyze the provided financials and note the absence of parent company data.
  • Ask your attorney whether parent company financials should have been required under franchise disclosure rules.
  • A business advisor can help you assess the risks of investing with a thinly capitalized subsidiary without a parental guarantee.
Citations: Item 1, Item 21

Predecessor History Issues

Low Risk

Explanation

The franchisor does not disclose any predecessors. This risk is not present because CSL is a new entity. However, the extensive and troubling history of the parent company's CEO, disclosed in Item 3, serves a similar function to a predecessor history, indicating potential risks related to management practices.

Potential Mitigations

  • Your attorney should carefully review Items 1 and 3 for any mention of past business activities or litigation.
  • A business advisor can help you research the history of the parent company and its management.
  • In any franchise, asking long-tenured franchisees about their experiences under previous ownership is a valuable due diligence step.
Citations: Item 1

Pattern of Litigation

High Risk

Explanation

Item 3 discloses an extensive and concerning litigation history involving John T. Hewitt, the CEO of CSL's parent company. The cases involve affiliates and include allegations of unfair competition, breach of contract, and breach of fiduciary duties. The Washington Addendum provides even more detail, including the resignation of auditors (KPMG) due to concerns about the 'tone at the top'. This pattern represents a significant risk regarding management's conduct.

Potential Mitigations

  • A thorough review of the details of all disclosed litigation with your attorney is essential.
  • It is critical to consider this litigation history as a reflection of the parent company's management culture.
  • Your business advisor can help you weigh the serious risks indicated by this pattern of legal disputes.
Citations: Item 3, Washington Addendum
2

Disclosure & Representation Risks

Total: 15
3
1
11

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
4
2
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

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4

Legal & Contract Risks

Total: 16
5
6
5

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
3
2
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
5
2
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
2
1
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
1
7
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
7
6
5

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 2
2
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.