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A46/100FDD 2025

Executive Home Care — Litigation & Risk

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

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Moderate — Review

3 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
3
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
46 / 100
FranchiseVerdict composite
Rating
STRONG
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
Arizona
State whose law governs disputes — relevant if you're not based there

What drove the 46/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 (Average Net Income) disclosed — inability to validate the $1.37M average revenue translates to actual franchisee profit
  2. 02HIGHAggressive litigation history: franchisor sued former franchisees twice with counterclaims/arbitrations, plus affiliate unregistered sale settlement indicates compliance/governance issues
  3. 03MINORHigh royalty structure (6% minimum or percentage-based) on home care model with thin margins and high labor costs creates profitability squeeze
  4. 04MEDModest unit growth (16.7% YoY from only 21 units) suggests limited brand scale and traction in competitive home care sector
  5. 05HIGHNo going concern statement raises questions about franchisor financial stability and long-term support capability
  6. 06MED10-year term lock-in with protected territory provides limited exit flexibility if business underperforms

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.