A32/100FDD 2025
Comfort Keepers — Litigation & Risk
Health & Wellness - Senior Care · FDD Items 3, 4 & 5
Elevated Risk
6 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
6
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
32 / 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
116
Government-backed loans issued
Default rate
3.9%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
3 loans
Loans charged off or defaulted
Total loan volume
$66.1M
Avg loan size
$570K
Participating lenders
58
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
Ohio
State whose law governs disputes — relevant if you're not based there
What drove the 32/100 rating
Risk Score Breakdown
- 01HIGHActive litigation including wage-and-hour class action and state AG investigations into non-solicit/hire practices creates operational and compliance risk
- 02MINORVicarious liability negligence claims (2x) indicate potential gaps in training, screening, or supervision of caregivers—critical in home health services
- 03MINORModest unit growth (7.1% YoY) suggests market saturation or competitive pressure in a 624-unit system
- 04MINORHigh franchise fee ($55,000) + royalty structure (5% or $500 minimum) with no Item 19 financials provided—cannot validate profit claims
- 05MINORMaster franchise termination in Quebec signals relationship breakdown and possible expansion strategy failure
- 06MINORSignificant investment range ($119,560–$190,700) with vague profit attribution—wide variance suggests inconsistent unit economics
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.