A44/100FDD 2026
CareBuilders At Home — 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
44 / 100
FranchiseVerdict composite
Rating
STRONG
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 44/100 rating
Risk Score Breakdown
- 01MEDNo average net income disclosed (Item 19) — inability to assess actual profitability despite $1.9M avg revenue claim
- 02MINORHigh royalty burden at 9% combined with no transparency on net margins — could squeeze franchisee profitability significantly
- 03MEDSmall unit base (28 units) with only 27.3% YoY growth — limited scale and unproven system maturity; high early-stage risk
- 04HIGHGoing Concern status is FALSE — suggests franchisor may have had financial distress or operational concerns flagged in disclosure
- 05MEDHigh initial investment ($110K-$166K) relative to unit count and growth rate — limited proven ROI track record
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.