House Doctors Logo

House Doctors

House Doctors, LLC
https://www.housedoctors.com
1-434-995-5582
126 Garrett Street, Suite J, Charlottesville, VA 22902

Initial Investment Range

$139,850 to $191,000

Franchise Fee

$70,000

The franchise offered is for the establishment and operation of businesses that provide a full range of handyman services for both exterior and interior portions of residences and "light commercial" buildings.

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House Doctors April 28, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: July 16, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
4
3
3

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor explicitly warns that its financial condition calls its ability to provide support into question. This is confirmed in the financial statements of its parent and guarantor, Premium Service Brands, LLC, which show a significant members' deficit of over $5.8 million and a net loss for the most recent fiscal year. This financial instability could impact the resources available for brand growth, training, and support, presenting a significant risk to your investment.

Potential Mitigations

  • An experienced franchise accountant should meticulously review the guarantor's complete financial statements, including footnotes and cash flow statements, to assess its viability.
  • It is crucial to have your franchise attorney evaluate the strength and enforceability of the parent company's Guarantee of Performance.
  • Speaking with a significant number of current franchisees about the actual level and quality of support they currently receive is essential for your due diligence.
Citations: Item 21, FDD page 4, Exhibit B

High Franchisee Turnover

High Risk

Explanation

Item 20 data reveals a high rate of franchisee churn. In the last three years, a significant number of outlets have ceased operations for reasons other than termination or non-renewal. For example, in 2022, 20 outlets left the system, representing nearly half of the outlets at the start of that year. This level of turnover could indicate systemic issues, such as franchisee unprofitability or dissatisfaction with the business model or franchisor support.

Potential Mitigations

  • You must contact a significant number of former franchisees listed in Exhibit F to understand their reasons for leaving the system.
  • A discussion with your accountant is essential to analyze the potential financial implications suggested by these high turnover rates.
  • Your franchise attorney should help you frame specific, direct questions for the franchisor regarding the causes of this churn.
Citations: Item 20, Exhibit F

Rapid System Growth

High Risk

Explanation

The system has more than doubled in size over the last three years, with a 76% increase in outlets in 2024 alone. Such rapid expansion can strain a franchisor's resources, potentially leading to inadequate franchisee support, training, and quality control. This risk is compounded by the franchisor's disclosed financial instability, which may affect its ability to scale its support infrastructure to match this growth.

Potential Mitigations

  • It is imperative to speak with franchisees who opened recently to assess the current quality and responsiveness of the franchisor's support systems.
  • Your business advisor can help you question the franchisor about their specific plans and investments in infrastructure to support this growth.
  • An accountant's review of the guarantor's financial statements is needed to determine if they have the capital to support continued expansion.
Citations: Item 20, Item 21

New/Unproven Franchise System

Medium Risk

Explanation

While the "House Doctors" brand has existed since 1997, the current franchisor entity, House Doctors, LLC (House Doctors LLC), has only been offering franchises since January 2022 after acquiring the system. This means you are investing with a relatively new franchisor management team. Their short track record, combined with the parent company's financial instability, may increase risks related to support quality, strategic direction, and overall system execution, even though the underlying business concept is not new.

Potential Mitigations

  • Engaging a business advisor to research the track record of the parent company, Premium Service Brands, and its management is highly recommended.
  • You should speak with franchisees who have been with the system through the ownership transition to understand any changes in support or culture.
  • Your attorney can help you ask detailed questions about the new ownership's long-term vision and commitment to the brand.
Citations: Item 1

Possible Fad Business

Low Risk

Explanation

This risk was not identified. The franchise operates in the home repair and handyman services industry, which is a well-established sector with consistent consumer demand. This is not considered a fad business, as it provides fundamental property maintenance services rather than being tied to a short-term trend.

Potential Mitigations

  • Even in a stable industry, consulting with a business advisor to analyze local market competition and demand is a prudent step.
  • Your accountant can help you project financial performance based on the specific economic conditions of your planned territory.
  • An attorney should review the agreement to ensure the definition of services offered provides sufficient flexibility for future market shifts.
Citations: Not applicable

Inexperienced Management

Low Risk

Explanation

This risk was not identified in the FDD. Item 2 indicates that the key executives of the parent company, Premium Service Brands, have extensive experience managing multiple home service franchise systems. This experience may reduce risks associated with unseasoned management, potentially leading to more developed support systems and strategic direction.

Potential Mitigations

  • It is still valuable to discuss the accessibility and quality of management's guidance with current franchisees.
  • A business advisor can help you research the public reputation and performance of the other franchise brands managed by this executive team.
  • During discovery day, you should assess the management team's vision and culture to ensure it aligns with your own goals.
Citations: Not applicable

Private Equity Ownership

Medium Risk

Explanation

The franchisor is part of a large portfolio of brands under a parent holding company, Premium Service Brands, which has a business model that involves acquiring multiple franchise systems. This structure can sometimes lead to a focus on short-term financial returns for investors, which may not always align with the long-term health of an individual franchisee's business. Decisions regarding fees, support levels, and system changes could be influenced by these broader financial goals.

Potential Mitigations

  • A business advisor can help you research the parent company's reputation and its track record with its other franchise brands.
  • Speaking with long-term franchisees about any changes in culture, support, or costs since the parent company's involvement is crucial.
  • Your attorney should review the franchise agreement for any terms that give the franchisor excessive flexibility to change fees or sell the system.
Citations: Item 1

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk does not appear to be present. Item 1 of the FDD clearly discloses the parent companies, and Exhibit B provides the audited consolidated financial statements for the guarantor, Premium Service Brands, LLC. This level of disclosure allows for a more complete assessment of the financial backing and overall stability of the entity guaranteeing the franchisor's performance.

Potential Mitigations

  • Your franchise accountant should review the provided parent company financial statements and the accompanying guarantee document thoroughly.
  • It is wise to have your attorney confirm that the guarantee is legally sound and provides meaningful protection.
  • Inquire with existing franchisees about the parent company's practical involvement and support for the House Doctors brand.
Citations: Not applicable

Predecessor History Issues

Medium Risk

Explanation

The House Doctors system has been owned by several different companies over its history, as disclosed in Item 1. While no significant negative legal or bankruptcy history for these specific predecessors is disclosed, the system has experienced high franchisee turnover in recent years. This complex ownership history could indicate periods of instability or strategic shifts that may have impacted franchisees, a factor worth exploring in your due diligence.

Potential Mitigations

  • A business advisor can assist you in researching the history and reputation of the predecessor companies if possible.
  • When speaking with long-term franchisees, inquire specifically about their experiences under previous ownership and the transition to the current franchisor.
  • Your attorney should review all disclosures related to the acquisition of the system to understand any inherited liabilities or obligations.
Citations: Item 1, Item 3, Item 20

Pattern of Litigation

High Risk

Explanation

Item 3 discloses a significant pattern of litigation and governmental regulatory actions involving the franchisor’s parent company (Premium Service Brands), its affiliates, and its CEO. These actions include franchisee lawsuits alleging fraud and multiple state-level enforcement orders for violations of franchise law, including a temporary bar on the CEO selling franchises in California. This history may indicate risks related to the franchisor group's sales practices, disclosure integrity, and compliance culture.

Potential Mitigations

  • Your franchise attorney must conduct a thorough review and analysis of every litigation and government action disclosed in Item 3.
  • Given the nature of these disclosures, performing independent research into the public records of these cases is highly advisable, with assistance from your attorney.
  • You should directly question the franchisor about these issues and the steps they have taken to correct the underlying problems.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
7
1
7

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
3
5
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

4

Legal & Contract Risks

Total: 16
4
5
7

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
2
2
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
4
3
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
2
2
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
3
7
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
8
8
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 2
2
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.