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B58/100FDD 2026

CarePatrol — Litigation & Risk

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

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Elevated Risk

14 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
14
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
58 / 100
FranchiseVerdict composite
Rating
MODERATE
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
37
Government-backed loans issued
Default rate
14.3%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$7.4M
Avg loan size
$199K
Participating lenders
13

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

What drove the 58/100 rating

Risk Score Breakdown

  1. 01HIGHGoing concern status is FALSE — indicates potential financial instability at corporate level despite positive unit economics
  2. 02HIGHModerate litigation exposure across franchisor and affiliated brands (Blue Moon, ComForCare, Next Day Access) involving fee collection, negligence, and regulatory violations suggests systemic operational or compliance issues
  3. 03MINORUnit growth of only 7.0% YoY is weak for a mature franchise system and may indicate market saturation or recruitment challenges
  4. 04MINORHigh royalty burden (10-12%) combined with $57,000 franchise fee creates significant financial pressure, especially given average net income of $131,827 (10-12% royalty = $32k-$40k annual cost)
  5. 05MINORFTC administrative complaint regarding website wording suggests potential misleading marketing practices or disclosure failures
  6. 06HIGHFranchisor litigation against franchisees for non-compete violations indicates possible territorial encroachment disputes or weak enforcement mechanisms

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.