D75/100FDD 2025

CareDiem Home Care — Litigation & Risk

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

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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

Total from FDD Items 3 and 4

Bankruptcy (Item 4)

—

Franchisor or officer bankruptcy

Overall risk score

75 / 100

FranchiseVerdict composite

Rating

CAUTION

STRONG / MODERATE / CAUTION / AVOID

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration

Not required

You retain the right to sue in court

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

Illinois

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

What drove the 75/100 rating

Risk Score Breakdown

01HIGHGoing Concern status is FALSE — indicates serious financial/operational distress at corporate level
02MINOROnly 2 units in system — extremely small franchise with minimal scale, support infrastructure, or proof of concept
03MINORNo financial disclosures (Item 19) — cannot verify average unit economics, profitability, or ROI claims
04MINORHigh initial investment ($80K-$170K) relative to system size creates disproportionate risk with unproven unit economics
05MINORUnknown unit growth trajectory — no evidence of system expansion or franchisee success
06MINORHome care is labor-intensive, high-compliance industry — corporate support critical but undemonstrated with only 2 units

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.