FDD Items 3 & 4 · 2025 filing
Amada Senior Care litigation history
What Amada Senior Care disclosed about lawsuits, arbitrations and bankruptcy in the 2025 Franchise Disclosure Document. Item 3 lists the material legal actions a franchisor must report; Item 4 covers bankruptcy. This is the franchisor's own disclosure, not a court record, and not legal advice.
Items 3 & 4 at a glance
What the filing discloses
- Cases disclosed
- 8
- Item 3, as counted in the filing
- Largest disclosed settlement
- $3.0M
- As stated in Item 3
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2025
- Disclosures cover the prior ten years
Extracted from the 2025 Franchise Disclosure Document
Item 3: litigation
8 disclosed matters including 4 California regulatory consent orders/stipulations (2016, 2019, 2020, 2016 Steffy/Ingersoll), consolidated Hamarock arbitration/litigation (settled $3M), and two current territory encroachment disputes (Micit and Time for an Audible) each pending in both AAA arbitration and state court.
Disclosure signals that moved the score
How this shows up in the verdict
- Multiple litigation disclosures including FDD violations, fraud allegations, and territory encroachment disputes suggest systemic compliance and relationship issues
- 11.4% YoY growth is modest for a home care franchise; litigation and consent orders suggest growth may be masking underlying dysfunction
- Multiple fraud and misrepresentation claims by franchisees indicate potential business model or support issues affecting unit viability
The verdict grade is FranchiseVerdict's editorial assessment across SBA loan performance, unit growth, revenue and disclosure signals. It is not investment advice.
Before you weigh a lawsuit
How to read Item 3
A franchisor must disclose pending actions and any material civil action involving the franchise relationship, plus convictions or civil judgments for fraud, unfair or deceptive practices, or franchise-law violations, going back ten years. A case the franchisor brought against a franchisee counts too. Item 3 does not include every dispute: settled claims below the materiality line and matters resolved in private arbitration can be absent.
Questions worth asking current and former franchisees, using the contact list in Item 20:
- Were you, or anyone you know in the system, party to a dispute with the franchisor?
- Was it resolved by settlement, arbitration or a court, and on what terms?
- Has the number of disputes gone up or down since you signed?