FranchiseVerdict
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A49/100FDD 2026

Serotonin — Litigation & Risk

Health & Wellness - Senior Care · FDD Items 3, 4 & 5

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Lower Risk

No litigation cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
49 / 100
FranchiseVerdict composite
Rating
STRONG
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
6
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$7.9M
Avg loan size
$1.3M
Participating lenders
5

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
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 49/100 rating

Risk Score Breakdown

  1. 01MEDNet income not disclosed despite $926K average revenue — unable to assess actual profitability and validate 7% royalty impact
  2. 02MINORExplosive 300% YoY unit growth (9 to 11 units) is mathematically inconsistent with claimed 11 total units — suggests data inconsistency or aggressive/unsustainable expansion claims
  3. 03MEDHigh initial investment range ($872K-$1.8M) with no disclosed net income creates significant ROI uncertainty and payback period risk
  4. 04MINORMinimum $2,500 monthly royalty floor ($30K annually) represents 3.2% of average revenue baseline, compressing margins for newer/slower locations
  5. 05MINOROnly 11 total units across system limits track record data, peer support network, and supplier negotiating power

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.