FranchiseVerdict
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B60/100FDD 2025

Always Best Care Senior Services — Litigation & Risk

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

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Moderate — Review

4 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
4
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
60 / 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
45
Government-backed loans issued
Default rate
6.2%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$12.8M
Avg loan size
$284K
Participating lenders
25

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

What drove the 60/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) prevents ROI validation on $89,725-$145,900 investment
  2. 02HIGHMultiple litigation incidents over 14 years including recent 2024 franchisor lawsuit for past-due amounts and 2012 FTC consent order, suggesting compliance and collection issues
  3. 03MED10.4% YoY unit growth is modest for senior care sector; 275 units is relatively small system with limited scale economies
  4. 04MED6% royalty + minimum royalty structure creates fixed cost burden if revenue targets aren't met, especially without disclosed benchmarks
  5. 05HIGHProtected territory language vague—unclear if territorial exclusivity is truly enforced given litigation history and franchise compliance concerns

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.