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A42/100FDD 2025

American Family Care — Litigation & Risk

Health & Wellness - Other · FDD Items 3, 4 & 5

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Moderate — Review

5 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
5
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
42 / 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
121
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
$140.4M
Avg loan size
$1.2M
Participating lenders
27

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

What drove the 42/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 (Average Net Income) disclosed—impossible to validate 1.77M revenue translates to acceptable profit after 6% royalty, labor, and overhead in urgent care model
  2. 02HIGHActive litigation on franchise termination and contract breach (Boni-Graceful, Trovato) suggests franchisor enforcement issues or franchisee performance disputes
  3. 03MINORPrior False Claims Act settlement (Salters) indicates potential billing/compliance issues in healthcare vertical—critical regulatory risk
  4. 04HIGHGoing Concern = False is ambiguous but combined with litigation and missing profitability data raises sustainability questions
  5. 05MINORUnit growth of 10.5% YoY is modest for urgent care franchise (2023-2024 healthcare franchises averaged 12-15%); may indicate saturation or quality concerns
  6. 06MINORExclusivity dispute history (Purugganan) and master developer termination (Lavender) suggest franchisor-franchisee alignment issues and territorial conflicts

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.