A53/100FDD 2025
Showhomes — Litigation & Risk
Health & Wellness - Senior Care · FDD Items 3, 4 & 5
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
53 / 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
8
Government-backed loans issued
Default rate
40.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
2 loans
Loans charged off or defaulted
Total loan volume
$1.2M
Avg loan size
$149K
Participating lenders
5
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
Florida
State whose law governs disputes — relevant if you're not based there
What drove the 53/100 rating
Risk Score Breakdown
- 01MEDUnit count declined 13.6% year-over-year (19 units remaining) — indicates system contraction and potential market viability issues
- 02MEDNet income not disclosed in Item 19 — unable to assess actual profitability; only average revenue of $560,899 provided without expense context
- 03MINORUnprotected territory — franchisees face direct competition from other Showhomes franchisees and potential encroachment
- 04MINORWide royalty structure (7%-10% of service sales plus 3%-7% of update sales) creates unpredictable cost burden depending on sales mix
- 05MINORHigh initial investment range ($48,895–$158,095) relative to system size and declining unit count raises ROI concerns
- 06MINOR10-year term is lengthy commitment for a shrinking franchise system with no growth trajectory
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.