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JDog Carpet Cleaning & Floor Care

JDog Carpet Franchising, LLC
https://jdog.com
1-844-655-5364
1021 Old Cassatt Road, Suite 100, Berwyn, PA 19312
FDD Version:

How much does JDog Carpet Cleaning & Floor Care cost?

Initial Investment Range

$42,909 to $206,447

Franchise Fee

$15,000 to $35,000

JDog Carpet Franchising, LLC, offers Franchises for the operation of residential and commercial carpet cleaning businesses under the name “JDog Carpet Cleaning & Floor Care”.

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JDog Carpet Cleaning & Floor Care June 30, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: August 22, 2025

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

1

Franchisor Stability Risks

Start Here
Total: 10
3
3
4

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor, JDog Carpet Franchising, LLC (JDog), discloses significant financial weakness. The audited financial statements show a net loss for the last three years and a Member's Deficit of over $700,000. JDog acknowledges reliance on its parent company for continued financial support. This financial condition is explicitly noted as a special risk and has led several states to require that your initial franchise fee be deferred until JDog meets its pre-opening obligations, indicating regulatory concern about its stability.

Potential Mitigations

  • A franchise accountant must thoroughly analyze the financial statements, including all notes regarding liquidity and related-party debt, to assess the franchisor's long-term viability.
  • Discuss with your attorney the specific protections and conditions of any state-mandated fee deferral to understand when your payment is due.
  • Ask the franchisor for their detailed plan to achieve profitability and reduce reliance on parent company funding, which you can then review with a business advisor.
Citations: Item 21, Exhibit G, State Specific Addenda (California, Virginia, Illinois, Maryland, Minnesota, North Dakota, Hawaii, South Dakota)

High Franchisee Turnover

High Risk

Explanation

The franchisor explicitly flags a high turnover rate as a special risk. Item 20 data confirms this, showing a significant number of franchise terminations. In fiscal year 2024, there were 12 terminations with only 12 outlets at the start of the year. This exceptionally high rate of franchisee failure or departure suggests potential systemic issues with the business model's profitability, the franchisor's support, or the viability of the franchise system for its operators.

Potential Mitigations

  • It is critical to contact a significant number of former franchisees from the list in Item 20 to understand their reasons for leaving; your attorney can help frame these questions.
  • A franchise accountant should help you model worst-case financial scenarios, considering the high probability of failure indicated by this data.
  • Discuss this high turnover rate directly with the franchisor and evaluate the credibility of their explanation with your business advisor.
Citations: Item 20

Rapid System Growth

Medium Risk

Explanation

While the system is growing, the rapid increase in outlets shown in Item 20, combined with the franchisor's weak financial position in Item 21, presents a risk. This growth may strain the franchisor's limited resources, potentially compromising its ability to provide adequate training, field support, and other assistance to all franchisees as the system expands. This could directly impact your operational readiness and ongoing success.

Potential Mitigations

  • Ask the franchisor for specific details on how they plan to scale their support staff and infrastructure to match outlet growth; a business advisor can help evaluate their plan.
  • In your discussions with current franchisees, specifically inquire about the recent quality and responsiveness of franchisor support.
  • Your attorney should scrutinize the franchisor's contractual support obligations in the Franchise Agreement to understand what is legally enforceable.
Citations: Item 20, Item 21

New/Unproven Franchise System

Medium Risk

Explanation

The franchisor, JDog Carpet Franchising, LLC (JDog), began offering franchises in 2019. As a relatively young system, it has a limited operating history and brand recognition compared to more established competitors. This newness, combined with the disclosed financial instability and high franchisee turnover, increases the investment risk. The business model's long-term viability and profitability for franchisees appear unproven based on the provided data.

Potential Mitigations

  • Conducting extensive due diligence by speaking with current and former franchisees is essential to gauge the real-world challenges of this young system.
  • A business advisor can help you perform a competitive analysis to understand how a new brand like JDog competes against established local and national players.
  • Your attorney might be able to negotiate more franchisee-favorable terms to compensate for the higher risk associated with an unproven system.
Citations: Item 1, Item 20, Item 21

Possible Fad Business

Low Risk

Explanation

This specific risk was not identified in the FDD package. A fad business is one tied to a short-lived trend, which can be risky as consumer interest may decline, leaving you with a long-term contract for a business with dwindling demand. Evaluating the long-term sustainability of a product or service is a key part of due diligence.

Potential Mitigations

  • A business advisor can help you research the industry to determine if there is stable, long-term consumer demand for the services offered.
  • Assess the franchisor's plans for innovation and adaptation to changing market trends with your business consultant.
  • Review industry reports and market studies to gauge the long-term outlook for the business sector with your financial advisor.
Citations: Not applicable

Inexperienced Management

Low Risk

Explanation

This specific risk was not identified in the FDD package. The executives listed in Item 2 appear to have several years of experience within the broader JDog brand ecosystem. However, you should always assess if management's experience is directly relevant to supporting a franchise system in this specific industry, as inexperience can lead to poor strategic decisions and inadequate support.

Potential Mitigations

  • A business advisor can help you vet the management team's background to ensure their experience is relevant to both the industry and to managing a franchise system.
  • When speaking with current franchisees, ask specific questions about the quality of management's decisions and the support they provide.
  • It is wise to research the professional backgrounds of key executives on platforms like LinkedIn with the help of your business consultant.
Citations: Item 2

Private Equity Ownership

Low Risk

Explanation

This specific risk was not identified in the FDD package. Item 1 does not indicate that the franchisor is owned by a private equity firm. When this is the case, there can be a risk that the ownership's focus on short-term returns may not align with the long-term health of franchisees. This can sometimes lead to increased fees or reduced support.

Potential Mitigations

  • If a franchisor is owned by a private equity firm, a business advisor can help you research the firm's reputation and track record with other franchise brands.
  • Consulting with your attorney is important to understand any clauses that would allow the franchisor to easily sell the entire system.
  • Discuss with existing franchisees whether they have noticed any changes in franchisor behavior since a potential private equity acquisition.
Citations: Not applicable

Non-Disclosure of Parent Company

Medium Risk

Explanation

The franchisor is a wholly-owned subsidiary of JDog Carpet Services, LLC (Parent). The FDD discloses that the franchisor is financially dependent on its Parent for liquidity. However, the FDD does not include the Parent's financial statements. While this may be technically compliant, it prevents you from fully assessing the financial strength of the entity that is guaranteeing the franchisor's continued operation, creating a significant information gap.

Potential Mitigations

  • Your accountant should review the franchisor's financials and note the dependency on the Parent company, which has not provided its own financial statements.
  • Asking the franchisor directly for the parent company's financial statements can provide a more complete picture of the system's overall financial health.
  • Your attorney can help you understand the legal implications and enforceability of the Parent's support promise without seeing its financials.
Citations: Item 1, Item 21, Exhibit G

Predecessor History Issues

Low Risk

Explanation

This specific risk was not identified in the FDD package. Item 1 does not disclose any predecessors. When a franchisor has predecessors, it is important to scrutinize their history for issues like litigation, bankruptcy, or high franchisee turnover, as these problems could be inherited by the current franchisor and affect the system's health.

Potential Mitigations

  • If a predecessor is listed, an attorney should carefully review their history as disclosed in Items 1, 3, and 4.
  • Independent research into a predecessor's business reputation can be conducted with the help of a business advisor.
  • It's beneficial to ask long-term franchisees about their experiences under any previous ownership.
Citations: Not applicable

Pattern of Litigation

High Risk

Explanation

Item 3 discloses that key management personnel (Christopher Debbas, James Griffiths) are defendants in a pending class-action lawsuit alleging serious ERISA violations related to an Employee Stock Ownership Plan at an affiliated company. While not directly against the franchisor, allegations of this nature against key executives responsible for the franchise system raise significant concerns about management's conduct and fiduciary responsibilities, which could indirectly impact the franchise system.

Potential Mitigations

  • A thorough review of the details of this litigation with your attorney is crucial to understand the potential implications.
  • Consider the potential for management distraction and financial strain on the individuals involved, which could affect their leadership of the franchise system, with your business advisor.
  • Ask the franchisor how they are managing this issue to ensure it does not impact their support obligations to franchisees.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
2
2
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
4
2

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
7
5
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.

5

Territory & Competition Risks

Total: 5
0
4
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.

6

Regulatory & Compliance Risks

Total: 10
3
5
2

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
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.

8

Operational Control Risks

Total: 12
3
4
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.

9

Term & Exit Risks

Total: 18
7
8
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.

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.