A39/100FDD 2026
FirstLight Home Care — Litigation & Risk
Health & Wellness - Senior Care · FDD Items 3, 4 & 5
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
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
39 / 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
63
Government-backed loans issued
Default rate
10.7%
vs <3% typical · system-wide
5-yr default rate
12.5%
Defaults
3 loans
Loans charged off or defaulted
Total loan volume
$13.9M
Avg loan size
$220K
Participating lenders
22
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 39/100 rating
Risk Score Breakdown
- 01MEDNet income not disclosed in FDD Item 19 — unable to verify actual profitability despite $1.55M average revenue claims
- 02MINORRoyalty structure includes undefined 'Minimum Performance Standard' threshold that could trigger higher payments regardless of actual gross revenue
- 03HIGHNo litigation disclosed but home care industry faces inherent regulatory and liability risks (caregiver background checks, client safety, wage/labor compliance)
- 04MINOR19.3% YoY unit growth may indicate aggressive recruitment masking underlying franchisee satisfaction or retention issues
- 05MEDInitial investment range ($151K-$256K) is substantial with no disclosed net income baseline to evaluate ROI timeline
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.