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F80/100FDD 2023

Home Care for the 21st Century — Litigation & Risk

Health & Wellness - Other · FDD Items 3, 4 & 5

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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
80 / 100
FranchiseVerdict composite
Rating
AVOID
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
9
Government-backed loans issued
Default rate
100.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$1.0M
Avg loan size
$115K
Participating lenders
2

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

What drove the 80/100 rating

Risk Score Breakdown

  1. 01MINORNo average revenue or net income disclosure (Item 19) prevents ROI validation and financial benchmarking
  2. 02MEDOnly 17 units total represents extremely small franchise system with limited data reliability and support infrastructure
  3. 03MINOR112.5% YoY unit growth appears artificially high given tiny base (likely only ~8 units one year ago) and may not reflect sustainable expansion
  4. 04HIGHGoing Concern flag set to False — requires clarification on franchisor's financial stability and operational viability
  5. 05MINORHigh franchise fee ($69,500) relative to total investment ($116,300–$196,600) creates significant upfront risk with unproven unit economics
  6. 06MINORTiered royalty structure incentivizes growth but provides no transparency on what percentage of franchisees reach each tier

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.