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Mighty Dog Roofing

MDR United LLC
https://www.mightydogroofing.com
1-800-490-8991
2525 N. 117 Avenue, Third Floor, Omaha, NE 68164

How much does Mighty Dog Roofing cost?

Initial Investment Range

$171,524 to $398,965

Franchise Fee

$85,787 to $220,787

We offer qualified individuals the right to operate a business that offers and sells roofing services to commercial and residential customers under the “Mighty Dog Roofing” mark.

Enjoy our partial free risk analysis below

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Mighty Dog Roofing April 29, 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

Medium Risk

Explanation

Audited financials show a history of negative net worth through 2023, though profitability is improving. Several states, including Illinois and Maryland, have required MDR United LLC (Mighty Dog Roofing) to defer collecting initial fees due to its financial condition. This history may suggest potential constraints on the franchisor's ability to provide long-term support, although recent performance is stronger.

Potential Mitigations

  • An experienced franchise accountant should analyze the complete three-year financial statements to assess solvency and trends.
  • Discuss the meaning of the state-mandated fee deferrals and the franchisor's financial health with your franchise attorney.
  • Inquire with current franchisees about any impacts they have felt from the franchisor's financial position.
Citations: Item 5, Item 21, Exhibit E, Exhibit D (State Addenda for IL, MD, ND)

High Franchisee Turnover

High Risk

Explanation

Item 20 data reveals a consistently high franchisee termination rate over the last two years, exceeding 10% annually. In 2024 alone, 41 franchisees were terminated out of a starting base of 354. This level of turnover is a significant red flag that may indicate systemic problems, potential franchisee unprofitability, or dissatisfaction with the franchisor or the business model.

Potential Mitigations

  • It is critical to contact former franchisees from the list provided in Exhibit I to understand their reasons for leaving.
  • A business advisor should help you compare this turnover rate to any available industry benchmarks.
  • Your attorney should help you frame direct questions to the franchisor regarding the reasons for this high number of terminations.
Citations: Item 20 (Table 3)

Rapid System Growth

High Risk

Explanation

The system has expanded by over 270% in the last two years, growing from 105 to 388 franchised outlets. Such rapid growth can strain a franchisor's resources, potentially leading to inadequate training, field support, and quality control for franchisees. This risk is amplified by the high franchisee termination rate noted in Item 20.

Potential Mitigations

  • Inquire with a broad range of franchisees, especially newer ones, about the quality and timeliness of support they are receiving.
  • Your business advisor should help you question the franchisor about their infrastructure for supporting this rapid expansion.
  • A review of the franchisor's financials with your accountant can help assess if they are reinvesting in support systems.
Citations: Item 20

New/Unproven Franchise System

Medium Risk

Explanation

Mighty Dog Roofing is a young franchise system, having started franchising in late 2020. The Franchise Agreement itself requires you to acknowledge the system has a "limited operating history." While the system is growing fast, this newness presents risks associated with unproven long-term models, evolving support structures, and limited brand recognition.

Potential Mitigations

  • A franchise attorney should be consulted to understand the risks associated with investing in a newer system.
  • Conducting extensive due diligence by speaking with the earliest franchisees is crucial for perspective.
  • A business advisor can help assess if the franchisor's management team has the experience to navigate this growth phase.
Citations: Item 1, FA § 23.1

Possible Fad Business

Low Risk

Explanation

This risk was not identified. Roofing is an established and necessary home service, not a business model based on a short-term trend or fad. The long-term demand for roofing repair and replacement is generally considered stable, subject to economic and housing market cycles.

Potential Mitigations

  • A business advisor can help you research the stability and long-term trends of the local roofing and home services market.
  • Your accountant can assist in building financial models that account for potential cyclicality in the construction and home repair industries.
  • Engage a real estate professional to understand local housing stock and demand drivers for roofing services.
Citations: Not applicable

Inexperienced Management

Low Risk

Explanation

The management team, as detailed in Item 2, has significant prior experience in operating and growing other franchise brands, many within the same parent company portfolio. This experience suggests they possess knowledge of franchise system management, support, and development, which can mitigate risks associated with a newer brand.

Potential Mitigations

  • A business advisor can help you research the track record and reputation of the management team's prior franchise ventures.
  • It is still valuable to ask current franchisees about their direct experiences with the support and strategic direction provided by this management team.
  • Consulting with your attorney about the implications of the interconnected management across many affiliated brands is recommended.
Citations: Item 2

Private Equity Ownership

Medium Risk

Explanation

The franchisor is part of a large portfolio of brands under the "Horsepower Brands" umbrella. This structure can function similarly to private equity ownership, with a potential focus on rapid growth and returns across the portfolio. This may influence decisions on fees, support levels, and supplier arrangements that might not always prioritize an individual franchisee's long-term health.

Potential Mitigations

  • A business advisor should help you research the reputation and track record of the parent company, Horsepower Brands.
  • It's wise to discuss with your attorney the complex web of affiliated companies and potential conflicts of interest.
  • Ask current franchisees about any changes in system focus or support since the portfolio has grown.
Citations: Item 1, Item 8

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified. The FDD clearly discloses the parent company and a large number of affiliated entities in Item 1, providing a transparent view of the corporate structure, although the structure itself is complex.

Potential Mitigations

  • Your attorney should review the roles of the parent and affiliate companies to ensure you understand all relationships.
  • Your accountant should analyze any financial guarantees or obligations involving the parent company.
  • Inquire with a business advisor about the strategic implications of being part of a large, multi-brand franchise portfolio.
Citations: Not applicable

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD. Item 1 discloses a predecessor from which assets were acquired, but Items 3 and 4 do not indicate any associated negative litigation or bankruptcy history that would need to be considered a risk.

Potential Mitigations

  • Your attorney can help verify the information provided about the predecessor in Items 1, 3, and 4.
  • Speaking with very early franchisees might provide insight into the transition from the predecessor system.
  • A business advisor could assist with public records searches on the predecessor entity for additional due diligence.
Citations: Not applicable

Pattern of Litigation

High Risk

Explanation

Item 3 discloses two pending lawsuits brought by franchisees against affiliated brands within the same parent organization. The complaints allege serious claims including fraudulent misrepresentation and fraud. While Mighty Dog Roofing is not a direct party, the involvement of the same parent company and management team suggests a potential pattern of disputes that could be relevant to you.

Potential Mitigations

  • A franchise attorney must carefully review the details of the litigation disclosed in Item 3 and explain its potential implications.
  • It is imperative to ask the franchisor about these lawsuits and their perspective on the claims being made.
  • Treating this pattern of litigation as a significant red flag, you should discuss the heightened risk with your attorney.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
2
6
7

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
3
7
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.

4

Legal & Contract Risks

Total: 16
5
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.

5

Territory & Competition Risks

Total: 5
2
3
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
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

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

7

Franchisor Support Risks

Total: 4
1
2
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
4
6
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.

9

Term & Exit Risks

Total: 18
7
9
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.

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.