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A34/100FDD 2025

Home Instead — 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
34 / 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
194
Government-backed loans issued
Default rate
2.7%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
5 loans
Loans charged off or defaulted
Total loan volume
$89.9M
Avg loan size
$464K
Participating lenders
59

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

What drove the 34/100 rating

Risk Score Breakdown

  1. 01MEDStagnant unit growth (0.5% YoY) suggests mature/declining system with limited expansion opportunity
  2. 02MINORNo Item 19 financial disclosure limits ability to validate $2.6M average revenue claim and actual profitability
  3. 03HIGHMultiple litigation cases involving breach of non-compete and wrongful termination indicate franchisor-franchisee relationship strain
  4. 04MINORHigh initial investment ($54K-$270K) relative to stated 5% royalty with unverified net income creates profitability uncertainty
  5. 05MEDService-based model dependent on labor costs and local hiring, with no disclosed labor economics or staffing efficiency metrics
  6. 06MINORFranchisor winning wrongful termination counterclaims suggests potential aggressive contract enforcement or termination practices

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.