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Worried Bird
How much does Worried Bird cost?
Initial Investment Range
$91,285 to $125,035
Franchise Fee
$76,285 to $86,285
We franchise the right to operate a “mobile-services” business focused on providing window washing, gutter cleaning, power washing, screen repairs and holiday lighting, primarily for residential and commercial customers.
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Worried Bird April 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.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
Worried Bird International, LLC (Worried Bird) explicitly warns that its financial condition calls its ability to provide support into question. Financial statements confirm this with extremely low cash ($25), significant debt, and current liabilities ($175,808) far exceeding current assets ($5,311). This potential instability could severely impact the franchisor's ability to fulfill its obligations to you, threatening the health of the entire system.
Potential Mitigations
- A franchise accountant should perform a thorough review of the franchisor's financial statements, including all footnotes and cash flow analysis.
- Discuss the implications of the explicit financial risk warning and the weak balance sheet with your franchise attorney.
- Ask your accountant to assess if the franchisor's business model appears sustainable without heavy reliance on initial franchise fee sales.
High Franchisee Turnover
High Risk
Explanation
Item 20 data reveals a high turnover rate. The system started 2024 with five franchises and ended with four, reflecting a 20% decline as one unit ceased operations. For a very small system, this level of turnover is a significant red flag that may indicate potential issues with the business model, franchisee profitability, or franchisor support, which could directly affect your chances of success.
Potential Mitigations
- It is critical to contact the former franchisee listed in Exhibit F to understand their reasons for leaving the system.
- Your accountant should analyze the turnover rate in the context of such a small system and its potential impact on brand stability.
- A discussion with your attorney about the legal implications of joining a system with a high early-stage turnover rate is advisable.
Rapid System Growth
Low Risk
Explanation
This risk was not identified in the FDD Package. Rapid growth can sometimes strain a franchisor's ability to provide adequate support and training to all franchisees. It is a factor to consider when evaluating a franchise system's stability and the quality of support you can expect to receive as the system expands.
Potential Mitigations
- Engaging a business advisor to evaluate the franchisor's support infrastructure in relation to its growth rate can provide valuable insight.
- Your accountant can review the franchisor's financial statements for signs of investment in support staff and systems to manage growth.
- It's wise to ask your attorney about contractual protections related to service levels if a system experiences rapid expansion.
New/Unproven Franchise System
High Risk
Explanation
The franchisor is a new entity, formed in late 2024, taking over a system that itself only began franchising in 2022. With only four active franchised units and a recent decline in unit count shown in Item 20, the business model and support systems are largely unproven. Investing in such a new system carries a higher risk of unforeseen challenges and potential instability compared to a more established brand.
Potential Mitigations
- Thorough due diligence on the track record of the parent company, Phoenix Franchise Brands, is essential; a business advisor can help.
- Speaking with all existing franchisees is critical to gauge the real-world viability of the business model and support systems.
- Your attorney might be able to negotiate more protective terms in the franchise agreement to compensate for the higher risk.
Possible Fad Business
Low Risk
Explanation
This risk was not identified in the FDD package. The business model, focused on home services like window washing and gutter cleaning, is well-established and not based on a short-term trend. However, a franchisee should always consider whether any business has long-term sustainable demand in their specific market.
Potential Mitigations
- A business advisor can help you conduct local market research to confirm sustained demand for the offered services.
- Understanding the franchisor's plans for service innovation and adaptation should be part of your due diligence process.
- Your financial advisor can help you assess the long-term economic viability of the business model beyond any market fluctuations.
Inexperienced Management
Medium Risk
Explanation
While the management team from parent company Phoenix Franchise Brands has experience with other franchise systems, their experience managing this specific Worried Bird concept is very recent. The franchisor entity itself was formed in late 2024. This could mean that systems, marketing, and support specific to this business model are still being refined, which may present operational challenges for you as an early franchisee.
Potential Mitigations
- Speaking with existing franchisees about the quality and relevance of management's support for this specific brand is crucial.
- A business advisor can help you assess whether management's experience in other, potentially different, service industries is transferable.
- Your attorney should review the franchisor's contractual obligations for support to ensure they are clearly defined.
Private Equity Ownership
High Risk
Explanation
The franchisor is part of a large portfolio of brands under the parent company, Phoenix Franchise Brands. This structure can sometimes prioritize overall portfolio growth or a future sale of the brands over the long-term health of an individual system. The extensive litigation history across other affiliated brands, disclosed in Item 3, heightens this risk, suggesting a potentially turbulent corporate environment.
Potential Mitigations
- A business advisor can help you research the parent company's reputation and track record with its other franchise brands.
- It's essential to discuss with your attorney the potential risks associated with a multi-brand holding company structure.
- Inquiring with franchisees from other brands owned by the parent company could provide insight into their management philosophy.
Non-Disclosure of Parent Company
Low Risk
Explanation
This risk was not identified in the FDD package, as the parent company, Phoenix Franchise Brands, LLC, is disclosed in Item 1. When a franchisor is a subsidiary, the financial health of the parent can be material. If a parent company is not disclosed or its financials are omitted when required, it can hide significant risks.
Potential Mitigations
- Your attorney should always verify that the ownership structure disclosed in Item 1 is complete.
- An accountant can help determine if a parent company's financial guarantee is necessary and, if so, properly disclosed and included.
- It is prudent to have a business advisor investigate the reputation and stability of any disclosed parent company.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified in the FDD package. While a predecessor is mentioned in Item 1, there are no specific negative historical issues, such as bankruptcy or litigation, disclosed directly against that predecessor entity. A complete predecessor history is important for understanding the full background of the franchise system.
Potential Mitigations
- A thorough review of Item 1 with your attorney ensures you understand the full history of the franchisor entity.
- Your business advisor can help research the history of any predecessor entities for undisclosed issues.
- When a predecessor exists, asking long-term franchisees about their experience under previous ownership can be insightful.
Pattern of Litigation
High Risk
Explanation
Item 3 reveals an extensive and serious pattern of litigation involving the franchisor's affiliates and principals, who manage Worried Bird. Cases include franchisee allegations of fraud, misrepresentation of financial performance, and regulatory actions for illegal franchise sales against other brands in the system. This suggests a potentially litigious and troubled franchise environment which could pose a significant risk to you.
Potential Mitigations
- A thorough review of every litigation disclosure in Item 3 with your franchise attorney is absolutely essential.
- Given the serious nature of the allegations, you should consider this pattern a critical red flag in your investment decision.
- Your attorney can help you understand the potential impact of this litigation history on the management and culture of the franchisor.
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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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.