B57/100FDD 2025
Bee Hive Homes — Litigation & Risk
Health & Wellness - Senior Care · FDD Items 3, 4 & 5
Moderate — Review
4 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
4
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
57 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.
Total 7(a) loans
104
Government-backed loans issued
Default rate
2.9%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
2 loans
Loans charged off or defaulted
Total loan volume
$182.8M
Avg loan size
$1.8M
Participating lenders
39
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
3 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Utah
State whose law governs disputes — relevant if you're not based there
What drove the 57/100 rating
Risk Score Breakdown
- 01MINORHigh initial investment ($3.4M-$5.1M) against modest average unit revenue ($843K) creates unfavorable ROI math and extended payback period
- 02MEDNet income not disclosed in FDD Item 19 prevents accurate profitability assessment and suggests weak unit economics
- 03MINORStagnant unit growth (1.0% YoY) across 201 units indicates market saturation or franchisee dissatisfaction
- 04MINORFHA discrimination settlement (2021) signals potential systemic compliance or operational issues in senior living care
- 05MINORThree active/recent negligence and unfair trade practice lawsuits involving residents/estates create reputational and liability exposure
- 06MINOR5% royalty on $843K average revenue = $42K annual cost before operating expenses, limiting franchisee margins
Severity inferred from FDD text — not a regulatory or legal classification
Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.