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B62/100FDD 2025

Talem Home Care — Litigation & Risk

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

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
62 / 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
4
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$1.1M
Avg loan size
$282K
Participating lenders
3

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

What drove the 62/100 rating

Risk Score Breakdown

  1. 01MINOROnly 8 units with unknown growth trajectory indicates stagnant or shrinking system
  2. 02HIGHActive litigation (filed March 2025) for breach of contract and trade secret misappropriation suggests operational/compliance issues and franchisor vulnerability
  3. 03MINORNo Item 19 (average net income) disclosure despite $1.24M average revenue—inability or unwillingness to provide profitability data is a major warning
  4. 04HIGHGoing Concern status of FALSE is ambiguous but suggests potential financial instability at corporate level
  5. 05MINORDual royalty structure (5% + 8%) totaling up to 13% is above industry standard for home care, reducing franchisee margins
  6. 06MINORWide investment range ($51K–$250K) with no explanation indicates lack of transparency or undefined startup scope

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.