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D74/100FDD 2026

A Better Solution In 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
74 / 100
FranchiseVerdict composite
Rating
CAUTION
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
15
Government-backed loans issued
Default rate
25.0%
vs <3% typical · system-wide
5-yr default rate
33.3%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$2.6M
Avg loan size
$173K
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
No
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
California
State whose law governs disputes — relevant if you're not based there

What drove the 74/100 rating

Risk Score Breakdown

  1. 01HIGHActive litigation from Nashville franchisees alleging fraud and misrepresentation regarding '100% passive business model' claims
  2. 02MINORAnemic unit growth of 3.7% YoY suggests system stagnation or contraction despite 30-unit base
  3. 03HIGHGoing Concern status is FALSE, indicating potential financial viability concerns at corporate level
  4. 04MINORHigh initial investment ($126,890-$235,350) paired with modest average net income ($542,813.50 across all units) creates long payback period and ROI risk
  5. 05HIGHPending litigation creates liability exposure and suggests marketing claims may have been overstated to franchisees
  6. 06MINOR5% royalty on gross revenues provides minimal margin cushion in home care industry with tight labor economics

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.