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Mosquito Squad
How much does Mosquito Squad cost?
Initial Investment Range
$162,380 to $220,375
Franchise Fee
$65,500 to $71,000
The franchise described in this disclosure document is for the operation of a Mosquito Squad business, which offers certain pest control services and equipment, including the sales, design, installation and servicing of outdoor misting systems, barrier treatment services, and other pest elimination and control systems for both residential and commercial use.
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Mosquito Squad April 17, 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.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
The audited financial statements for the parent guarantor, AB Assetco LLC, show a net loss of over $14.3 million for the 2024 fiscal year, a significant negative shift from profits in 2023 and 2022. The loss was driven by a $17.7 million impairment charge. This financial downturn could potentially impact the resources available to Mosquito Squad Franchising SPE LLC (Mosquito Squad SPE LLC) for supporting and growing the franchise system, presenting a risk to its stability.
Potential Mitigations
- Your accountant should thoroughly analyze the consolidated financial statements, including all footnotes and the nearly $18 million impairment loss, to assess the franchisor's financial health.
- It is important to discuss the company's financial performance and future stability with your business advisor.
- Inquire with current franchisees about any perceived changes in the level or quality of support provided by the franchisor.
High Franchisee Turnover
Medium Risk
Explanation
Item 20 data from the last three years shows a consistent pattern of franchisee exits. In 2024, 10 territories exited the system through non-renewal or other cessations. In 2023, 11 territories exited, and in 2022, 15 territories exited. While the calculated annual turnover rate is below 10%, this steady stream of exits could suggest underlying challenges with profitability, operational models, or franchisee satisfaction that warrant further investigation into why franchisees are leaving the system.
Potential Mitigations
- A business advisor can help you analyze the three-year trend of franchisee exits to better understand the rate and reasons for turnover.
- Contacting former franchisees listed in Exhibit G is crucial to learn firsthand why they left the system.
- Your attorney should help you formulate specific questions for the franchisor regarding the franchisee exit numbers.
Rapid System Growth
Low Risk
Explanation
The franchise system is large and established, and Item 20 data shows a net increase in franchised territories over the past two years. Therefore, the specific risk associated with unmanageably rapid growth straining support systems was not identified as a primary concern in the documents.
Potential Mitigations
- Asking current franchisees about their perception of the franchisor's support capabilities would be a prudent step.
- A business advisor can help you evaluate the franchisor's growth plans against its support infrastructure.
- Your accountant should review the financial statements to assess if the franchisor has allocated sufficient resources for franchisee support.
New/Unproven Franchise System
Low Risk
Explanation
This risk was not identified. The Mosquito Squad brand and its predecessor have been franchising for over a decade, indicating an established system with a significant number of operating units. It does not appear to be a new or unproven franchise concept.
Potential Mitigations
- It is still wise to consult with your business advisor to assess the long-term viability and market position of any established brand.
- An accountant can review the financial statements in Item 21 to confirm the system's financial maturity and stability.
- Discussing the system's history and evolution with long-tenured franchisees can provide valuable insight.
Possible Fad Business
Low Risk
Explanation
This risk was not identified. The market for pest and mosquito control is well-established and generally driven by recurring consumer need rather than short-term trends. The business model appears to be based on providing a consistent service rather than a fad.
Potential Mitigations
- A business advisor can help you research the long-term stability and demand within the pest control industry in your local market.
- It is still important to review the franchisor's plans for service innovation and adaptation in Item 11.
- Your financial advisor can help assess the business model's resilience to various economic cycles.
Inexperienced Management
Low Risk
Explanation
This risk was not identified in the FDD. Item 2 lists executives with extensive experience within the company, its affiliates, and the broader service and franchising industries. Many key personnel have been with the brand or its parent company for several years, suggesting a stable and experienced management team is in place.
Potential Mitigations
- It remains valuable to research the professional backgrounds of the key executives listed in Item 2.
- A discussion with current franchisees can provide perspective on their confidence in the management team's leadership and strategic direction.
- Engaging a business advisor to review the leadership team's collective experience is a sound due diligence step.
Private Equity Ownership
High Risk
Explanation
The franchisor's ultimate majority owner is Apax Partners, LLP, a private equity firm. This ownership structure may create a risk that strategic decisions could prioritize short-term returns for investors over the long-term health of franchisees. This could manifest as pressure to increase fees, cut support costs, or sell the company, potentially to a new owner with a different operational philosophy. This introduces a layer of uncertainty regarding the franchisor's long-term objectives and stability.
Potential Mitigations
- You should discuss the implications of private equity ownership on franchise systems with your franchise attorney.
- It is advisable to research the private equity firm's history and reputation with other franchise brands they have owned.
- Talking to franchisees who have operated under the current ownership can provide insight into any changes in support or strategy.
Non-Disclosure of Parent Company
Low Risk
Explanation
This risk was not identified. Item 1 clearly discloses the parent company structure, and the FDD includes the audited consolidated financial statements of the parent guarantor, AB Assetco LLC, in Exhibit I. This provides the necessary financial transparency for the entity guaranteeing the franchisor's performance.
Potential Mitigations
- Your accountant should still carefully review the provided parent company financial statements and the accompanying guarantee.
- It is important for your attorney to confirm the scope and enforceability of the parent company guarantee.
- A business advisor can help you understand the full corporate structure and how it might impact your franchise.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified. Item 1 clearly discloses the predecessor, Mosquito Squad Franchising, LLC (“MSQ”), and provides its history. The FDD appears to integrate the history of the predecessor into its disclosures, such as litigation and franchisee turnover data, providing a continuous view of the system's historical performance.
Potential Mitigations
- Your attorney should still review all information related to the predecessor to ensure full transparency.
- Asking long-term franchisees about their experience under the predecessor's management can provide valuable context.
- A business advisor can help you analyze how the transition from the predecessor may have impacted the system.
Pattern of Litigation
Medium Risk
Explanation
Item 3 discloses a concluded Assurance of Discontinuance (AOD) with the Massachusetts Attorney General regarding allegations of misleading advertising claims. While the franchisor denied wrongdoing, the action involved both the franchisor and its franchisees and resulted in a payment and an agreement to monitor future advertising. This indicates a significant regulatory event and highlights a key compliance risk area for the business model related to service and product claims.
Potential Mitigations
- It is crucial to have your attorney review the details of the litigation in Item 3 to understand its implications for your own advertising.
- Discuss with the franchisor what specific changes to advertising policies and training resulted from this action.
- A business advisor can help assess how these advertising restrictions might impact marketing effectiveness in your territory.
Disclosure & Representation Risks
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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Financial & Fee Risks
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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Legal & Contract Risks
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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Territory & Competition Risks
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.
Regulatory & Compliance Risks
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.
Franchisor Support Risks
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.
Operational Control Risks
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.
Term & Exit Risks
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.
Miscellaneous Risks
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.
