MosquitoNix Logo

MosquitoNix

MosquitoNix Franchise, LLC
https://www.mosquitonix.com
1-855-808-2847
8940 Western Way Ste. #2, Jacksonville, FL 32256

Initial Investment Range

$7,700 to $157,400

Franchise Fee

$0 to $23,500

The franchise is for a stand-alone business, or potentially a refranchised business, that sells, installs, applies and services MosquitoNix integrated residential and commercial mosquito and other indoor and outdoor pest management systems and related fogging, spraying, baiting, and trapping applications under the MosquitoNix trademark and other Proprietary Marks and sells, installs, and services holiday lighting displays and decorations under the MosquitoNix Elves trademark and other Proprietary Marks.

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MosquitoNix April 30, 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 franchisor's own audited financial statements for 2024 reveal significant financial distress, including a net loss of over $1.2 million and a members' deficit (negative net worth) of $470,077. Unaudited statements for Q1 2025 show these trends continuing. Management notes in Item 21 express uncertainty about continuing as a going concern, relying on member support. This financial weakness calls into question the franchisor's ability to provide support or even remain in business.

Potential Mitigations

  • A franchise accountant must conduct a thorough analysis of the financial statements, including all footnotes, to assess the franchisor's viability.
  • Understanding the terms of any financial support pledged by the franchisor's parent companies requires review by your attorney.
  • Discuss the practical implications of the franchisor's financial state and its ability to provide promised support with current franchisees.
Citations: Item 21, Exhibit A

High Franchisee Turnover

High Risk

Explanation

Item 20 data from 2024, the first year of franchising, indicates a very high churn rate. The franchisor opened 10 franchised outlets, and 2 of them (20%) had already ceased operations within that same year. This extremely high rate of early-stage failure is a significant red flag that may indicate systemic problems with the business model, franchisee support, or profitability, creating a substantial risk for new investors.

Potential Mitigations

  • It is critical to contact the franchisees listed as having ceased operations in Exhibit D to understand the reasons for their departure, with guidance from your attorney.
  • In discussions with your business advisor, you should question the franchisor directly about the high rate of initial failures.
  • Your accountant should factor this high failure rate into your financial projections as a significant risk to your potential success.
Citations: Item 20, Exhibit D

Rapid System Growth

High Risk

Explanation

The franchisor is new and financially weak, yet Item 20 shows it is expanding very quickly, with 8 outlets opened and 19 more agreements signed in its first year. This rapid growth, combined with significant operating losses, suggests the franchisor's resources may be stretched thin. This could compromise the quality and availability of essential training, site selection assistance, and ongoing operational support for you and other new franchisees.

Potential Mitigations

  • Your business advisor can help you assess whether the franchisor's support infrastructure is capable of handling such rapid expansion.
  • Ask current franchisees about their experience with the timeliness and quality of the support they are currently receiving.
  • An analysis of the franchisor's financials with your accountant can help determine if they have the capital to support this growth.
Citations: Item 20, Item 21

New/Unproven Franchise System

High Risk

Explanation

The franchisor entity, MosquitoNix Franchise, LLC (MosquitoNix LLC), was formed in June 2023 and only began franchising in December 2023. The FDD's "Special Risks" section explicitly highlights its "Short Operating History." As a new and unproven system, it lacks a track record of supporting successful franchisees. This introduces significant uncertainty regarding its business model's viability, the effectiveness of its support systems, and its overall long-term stability, increasing your investment risk.

Potential Mitigations

  • A business advisor should assist you in performing extensive due diligence on the industry and the specific management team's prior experience.
  • It is imperative to speak with the first franchisees to join the system to gauge their experience with this new franchisor.
  • Given the higher risk, your attorney may be able to negotiate more favorable terms, such as better protections or lower fees.
Citations: Item 1, Item 20, Item 21, FDD Special Risks Section

Possible Fad Business

Low Risk

Explanation

This risk was not identified in the FDD package. The business model, which combines seasonal pest control with seasonal holiday lighting installation, appears to be a strategy to create year-round revenue streams rather than relying on a fleeting trend. Both service categories represent established consumer demands. However, you should still assess the long-term market for these combined services.

Potential Mitigations

  • A business advisor can help you conduct independent market research to verify sustained consumer demand for both pest control and holiday lighting services in your area.
  • Consider the business model's resilience to economic downturns when creating financial projections with your accountant.
  • Discuss the franchisor's long-term vision and plans for innovation with both management and current franchisees.
Citations: Not applicable

Inexperienced Management

Low Risk

Explanation

This risk was not identified in the FDD package. Item 2 indicates that the key personnel of the new franchisor entity have extensive and long-term prior experience managing and operating the MosquitoNix brand through various predecessor and affiliate companies, with some experience dating back to 2012. This suggests the management team, while new to this specific corporate entity, is not new to the industry or the brand itself.

Potential Mitigations

  • It is still wise to verify the quality of management by speaking with current franchisees about their experiences with the support and guidance provided.
  • Your business advisor can help you research the track record of the predecessor companies listed in Item 1.
  • Confirm with the franchisor how the experience from predecessor companies is being leveraged to support the new franchise system.
Citations: Not applicable

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD package. Item 1 indicates the franchisor is owned by other corporate entities and a family trust, with the ultimate parent being Franworth, LLC. Franworth is a franchise development and management firm, not a traditional private equity firm known for short-term investment horizons. While this presents its own set of considerations, it is not the specific risk associated with typical private equity ownership.

Potential Mitigations

  • Researching the business model and reputation of the parent company, Franworth, LLC, can provide insight into their operational philosophy; your business advisor can help.
  • Inquire with current franchisees about any changes in system direction or support levels.
  • Your attorney should review the franchisor's right to sell or assign the franchise system to understand potential future ownership changes.
Citations: Not applicable

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified in the FDD package. Item 1 provides a complex but seemingly comprehensive overview of the parent companies (FW-MQX Holdings, LLC, O'Neal Family Trust, Franworth, LLC) and predecessors. While financials for the ultimate parent are not provided, there is no indication that a guarantee from them is being offered or is necessary to mask the franchisor's poor financials, which are fully disclosed.

Potential Mitigations

  • Your attorney can help you understand the complex corporate structure outlined in Item 1 and its implications for you.
  • Asking the franchisor to clarify the roles and responsibilities of each parent and affiliate entity is a reasonable step.
  • An accountant should confirm if the provided financial statements are sufficient for a full risk assessment without the parent's financials.
Citations: Not applicable

Predecessor History Issues

Medium Risk

Explanation

The FDD reveals a convoluted history of predecessor companies (FEMO Group, FEMO GFS, FEMO FS) that have offered MosquitoNix franchises intermittently since 2008. This complex and unstable corporate history, involving multiple restructurings, suggests there may have been past business or legal challenges. The lack of continuous, stable operation under a single entity for a long period adds a layer of risk and uncertainty about the system's true historical performance and stability.

Potential Mitigations

  • A thorough review of this complex corporate history and its potential implications should be conducted with your franchise attorney.
  • Questioning the franchisor about the reasons for the various corporate restructurings is important for due diligence.
  • It may be beneficial to seek out long-term franchisees or employees who have experience with the predecessor companies.
Citations: Item 1, Item 20

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD package. Item 3 states that there is no litigation information that requires disclosure. This suggests there are no pending or recent lawsuits against the franchisor or its management that meet the materiality requirements for disclosure under federal franchise law, such as claims of fraud, misrepresentation, or franchise law violations.

Potential Mitigations

  • An attorney can still conduct independent public record searches for litigation that may not have met the threshold for FDD disclosure.
  • During discussions with current and former franchisees, it is prudent to ask about any disputes they may have had with the franchisor.
  • Reviewing the franchisor's termination rights in the Franchise Agreement with your attorney can provide insight into their approach to disputes.
Citations: Not applicable
2

Disclosure & Representation Risks

Total: 15
6
3
6

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
5
3
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
6
7
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.

5

Territory & Competition Risks

Total: 5
4
0
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
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
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
3
6

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
10
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.

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.