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TriOrganics
How much does TriOrganics cost?
Initial Investment Range
$95,100 to $287,200
Franchise Fee
$74,700 to $214,500
TriOrganics is a business that provides all-natural mosquito and tick repellant services and pest control for residential and commercial landscapes.
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TriOrganics April 25, 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.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
The franchisor is a new entity with a very weak financial position. The audited 2024 balance sheet in Exhibit D shows minimal assets ($793) and negative retained earnings. The FDD's "Special Risks" section explicitly warns about the franchisor's financial condition, calling into question its ability to provide support or even remain solvent. This financial weakness presents a significant risk to your investment, as the franchisor may rely heavily on new franchise fees for survival.
Potential Mitigations
- A franchise accountant must thoroughly analyze the franchisor's financial statements, including footnotes, to assess its viability and capital adequacy.
- Discuss the franchisor's plan for funding its operations and franchisee support with your financial advisor, independent of new franchise sales.
- Your attorney should confirm if any state has required a financial assurance mechanism like an escrow or bond due to the weak financials.
High Franchisee Turnover
Low Risk
Explanation
This risk was not identified in the FDD Package because the franchisor is new and has no operating franchisees. Item 20 shows zero franchisee turnover because no franchises have been sold. While this means there is no history of high turnover, the complete lack of an operating track record with franchisees is itself a significant risk, which is addressed under the "New/Unproven Franchise System" risk.
Potential Mitigations
- Your business advisor should help you perform extensive due diligence on the franchisor's management and the viability of their single company-owned unit.
- In any franchise, it is critical to ask a significant sample of former franchisees why they left the system.
- An accountant can help you analyze the Item 20 tables in any FDD to calculate the true turnover rate over a three-year period.
Rapid System Growth
Low Risk
Explanation
This risk was not identified as the FDD Package shows there are currently no franchisees and therefore no growth. Rapid growth can strain a franchisor's ability to provide adequate support. While not a present risk, it could become one if the franchisor begins selling franchises quickly without scaling its support infrastructure, a concern for any new system.
Potential Mitigations
- Should you consider this franchise, it would be wise to ask the franchisor about their specific plans to scale support staff and systems as new units are sold.
- A business advisor can help you evaluate whether a franchisor's growth plans are realistic and sustainable relative to their resources.
- Consulting with an attorney can help you understand your contractual rights to support if the system's quality diminishes due to rapid growth.
New/Unproven Franchise System
High Risk
Explanation
The franchisor, TriOrganics Franchising LLC (TriOrganics), is a new, unproven system, having been established in October 2022 with zero operating franchisees. The FDD explicitly highlights this as a "Short Operating History" in its Special Risks section. Investing in a new system carries a higher risk of business failure due to untested operating models, minimal brand recognition, and a lack of a performance history from other franchisees to rely upon for due diligence.
Potential Mitigations
- With your business advisor, you should conduct extensive due diligence on the management team's prior industry and franchising experience.
- Your accountant must carefully scrutinize financial projections, as there is no franchisee performance data to validate assumptions.
- It may be possible for your attorney to negotiate more favorable terms, such as lower fees or enhanced protections, to compensate for this higher risk.
Possible Fad Business
Medium Risk
Explanation
The business model, focused on "all-natural" pest control, may be subject to shifting consumer trends and could potentially be a fad. Item 1 notes the market is highly competitive with both independent providers and large retailers like Lowe's and Home Depot. The business is also described as seasonal, which can affect year-round revenue stability. There is a risk that the business's specific niche may not have the long-term sustainability of more traditional pest control services.
Potential Mitigations
- Engage a business advisor to independently research the long-term market demand for "all-natural" versus traditional pest control services in your area.
- Question the franchisor on their plans for research and development to adapt the service offerings to evolving market preferences and competition.
- Your financial advisor should help you create financial models that account for the potential impact of seasonality on your revenue and cash flow.
Inexperienced Management
Medium Risk
Explanation
While the management team has experience in related landscaping and other franchise concepts, this specific TriOrganics system is new and unproven. The executives' experience in operating this particular business model as a successful franchise has not been established. This presents a risk that the support, training, and strategic direction may be underdeveloped or less effective than that of a more mature system with a management team experienced in the same specific business.
Potential Mitigations
- A thorough investigation of the management team's track record with their other franchise concepts should be conducted with your business advisor.
- It is important to ask the franchisor direct questions about how their past experiences specifically apply to the challenges of this business.
- If possible, speaking with franchisees from the management's other systems could provide insight into their operational capabilities and support style.
Private Equity Ownership
Low Risk
Explanation
This risk was not identified in the FDD Package. The documents do not indicate that the franchisor is owned or controlled by a private equity firm. This type of ownership can be a risk because private equity firms may prioritize short-term returns over the long-term health of the franchise system, sometimes leading to increased fees or reduced franchisee support.
Potential Mitigations
- You can typically determine ownership structure by having your attorney carefully review Item 1 of the FDD.
- 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 brands.
- Talking to franchisees who have been with a system before and after a private equity acquisition can provide valuable insight.
Non-Disclosure of Parent Company
Medium Risk
Explanation
TriOrganics discloses a complex web of affiliated companies with intertwined roles, such as R3volution Brands for marketing, APS Innovates for supplies, and Cranberry IP, LLC as the owner of the trademarks. While affiliates are disclosed, this convoluted structure can make it difficult to determine which entity holds ultimate responsibility and financial strength. It creates a risk that critical functions are outsourced to other new entities, potentially affecting the quality and stability of support.
Potential Mitigations
- Your attorney should help you map out the corporate structure and understand the contractual relationships between the franchisor and each key affiliate.
- An accountant should review the financials of any affiliate that guarantees the franchisor's performance or is an essential supplier, if provided.
- Clarifying which entity is responsible for each specific support service is a key task for your attorney.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified in the FDD Package. Item 1 clearly states, "We do not have any predecessors." This means the current franchisor did not acquire the system from a prior entity. Therefore, there is no hidden history of litigation, bankruptcy, or franchisee failures associated with a predecessor that you would need to investigate.
Potential Mitigations
- Your attorney can confirm the absence of predecessors by reviewing Item 1 of the FDD.
- In any FDD, if predecessors are listed, it's crucial to research their history for any red flags, such as litigation or high franchisee turnover.
- A business advisor can help you understand the implications if a new franchisor has taken over a troubled system from a predecessor.
Pattern of Litigation
Low Risk
Explanation
This risk was not identified in the FDD Package. Item 3 states, "No litigation is required to be disclosed in this Item." This indicates there is no current significant legal action involving the franchisor, its predecessors, or key individuals that alleges fraud, franchise law violations, or other relevant claims. The absence of such litigation is a positive sign, although it is expected for a brand-new system.
Potential Mitigations
- An attorney should always review Item 3 to understand the nature and frequency of any disclosed litigation.
- For any disclosed litigation, your attorney can help you obtain and review the actual court filings for more detailed information.
- A pattern of lawsuits filed by franchisees can be a major red flag that warrants discussion with your business advisor and attorney.
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
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
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
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
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.
