FranchiseVerdict
ComForCare Home Care logo
D68/100FDD 2024

ComForCare Home Care — Litigation & Risk

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

Back to overview

Elevated Risk

8 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
8
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
68 / 100
FranchiseVerdict composite
Rating
CAUTION
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
47
Government-backed loans issued
Default rate
35.7%
vs <3% typical · system-wide
5-yr default rate
16.7%
Defaults
5 loans
Loans charged off or defaulted
Total loan volume
$15.1M
Avg loan size
$322K
Participating lenders
15

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 68/100 rating

Risk Score Breakdown

  1. 01HIGHMultiple active litigation cases including FTC complaint, wage violation class action, and state regulatory non-compliance—suggests systemic operational or compliance issues
  2. 02MEDNo disclosed average net income (Item 19) despite $1.19M average revenue—inability or unwillingness to share profitability raises earnings claim transparency concerns
  3. 03MINORSlow unit growth of 4.6% YoY with 229 units is anemic for home care franchise sector—suggests market saturation, franchisee struggle, or brand stagnation
  4. 04MEDHigh initial investment ($59K franchise fee + up to $163.9K total) paired with undisclosed net income creates unfavorable risk-reward ratio
  5. 05MINORWage violation class action in home care sector is particularly damaging—home care is labor-intensive; wage liability directly impacts franchisee profitability and legal exposure

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.