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A28/100FDD 2025

Amada Senior Care — Litigation & Risk

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

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Elevated Risk

8 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
8
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
28 / 100
FranchiseVerdict composite
Rating
STRONG
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
34
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
$14.7M
Avg loan size
$433K
Participating lenders
17

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
Location of Outlet
State whose law governs disputes — relevant if you're not based there

What drove the 28/100 rating

Risk Score Breakdown

  1. 01HIGHMultiple litigation disclosures including FDD violations, fraud allegations, and territory encroachment disputes suggest systemic compliance and relationship issues
  2. 02MEDNo Item 19 (Average Unit Volume) disclosed despite $1.6M average revenue — lack of transparency on actual franchisee profitability and net income
  3. 03MINORCalifornia consent orders for FDD violations indicate franchisor failed to provide accurate disclosures, raising questions about current disclosure accuracy
  4. 04MEDHigh royalty rate (5-6%) combined with undisclosed net income makes it impossible to validate ROI on $118K-$465K investment
  5. 05HIGH11.4% YoY growth is modest for a home care franchise; litigation and consent orders suggest growth may be masking underlying dysfunction
  6. 06HIGHMultiple fraud and misrepresentation claims by franchisees indicate potential business model or support issues affecting unit viability

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.