D75/100FDD 2022
Always An Angel Homecare — 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
75 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID
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
New York
State whose law governs disputes — relevant if you're not based there
What drove the 75/100 rating
Risk Score Breakdown
- 01MINOROnly 2 units in entire system indicates minimal scale and unproven franchise model replicability
- 02HIGHGoing Concern designation suggests financial instability or solvency questions at corporate level
- 03MEDNo disclosed net income data prevents accurate ROI validation and profitability assessment
- 04MINORHigh franchise fee ($48,000) relative to tiny unit count raises sustainability concerns about franchisor viability
- 05MINORUnknown growth trajectory with only 2 units creates uncertainty about system expansion capability
- 06MED5% royalty on $922K average revenue = $46K annual ongoing fee compressed against undisclosed net margins
- 07HIGHNo litigation disclosure combined with 'Going Concern' status suggests potential unreported legal or financial issues
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.