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B64/100FDD 2025

House Doctors — Litigation & Risk

Home Services - Other · FDD Items 3, 4 & 5

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Elevated Risk

17 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
17
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
64 / 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
49
Government-backed loans issued
Default rate
10.5%
vs <3% typical · system-wide
5-yr default rate
20.0%
Defaults
2 loans
Loans charged off or defaulted
Total loan volume
$6.7M
Avg loan size
$136K
Participating lenders
12

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 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
Virginia
State whose law governs disputes — relevant if you're not based there

What drove the 64/100 rating

Risk Score Breakdown

  1. 01MEDSevere unit contraction: 24% YoY decline (88 units) indicates system collapse or serious franchisee dissatisfaction
  2. 02HIGHMultiple fraud and breach of contract lawsuits against franchisor and CEO Paul Flick across affiliated brands (360 Painting, Window Gang, RooterMan) suggests systemic compliance issues
  3. 03MINORNo Item 19 (Average Net Income) disclosure despite $573K average revenue—franchisor unwilling to show profitability, likely indicating most franchisees are unprofitable
  4. 04HIGHGoing Concern status is FALSE, which is a critical red flag indicating potential insolvency or business viability concerns
  5. 05HIGHLitigation involves franchise registration/disclosure law violations, suggesting franchisor has knowingly misrepresented material facts to franchisees
  6. 06MEDHigh royalty burden (6% + $150/week = ~$8,800 minimum annually) on undisclosed net margins creates unsustainable unit economics

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.