F84/100FDD 2026
Nurse Next Door — Litigation & Risk
Home Services - Other · 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
84 / 100
FranchiseVerdict composite
Rating
AVOID
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
52
Government-backed loans issued
Default rate
40.0%
vs <3% typical · system-wide
5-yr default rate
90.0%
Defaults
10 loans
Loans charged off or defaulted
Total loan volume
$9.1M
Avg loan size
$175K
Participating lenders
14
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
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
Washington
State whose law governs disputes — relevant if you're not based there
What drove the 84/100 rating
Risk Score Breakdown
- 01MINORDeclining unit count (-2.7% YoY) indicates system contraction and potential franchisee dissatisfaction
- 02HIGHMultiple active litigations including material misrepresentation claims regarding licensure—critical for home care operations
- 03MEDNo disclosed average net income despite $119K-$217K investment and $221K average revenue raises profitability concerns
- 04HIGHGoing Concern status is FALSE, suggesting potential financial viability questions at franchisor level
- 05MINORHigh franchise fee ($72K) relative to initial investment floor creates risk if franchisees underperform
- 06MINORCalifornia investigation regarding earnings representations indicates potential disclosure violations in Item 19
- 07MINORFlorida franchisee lawsuit alleging misrepresentations on licensure directly impacts regulatory compliance and operations
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.