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B59/100FDD 2025

Home Matters Caregiving — Litigation & Risk

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
59 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

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

What drove the 59/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 (Average Unit Volume) disclosed — impossible to validate ROI claims or benchmark performance
  2. 02HIGHGoing Concern status is FALSE, indicating potential financial instability at franchisor level
  3. 03MINOROnly 17 units system-wide with 100% YoY growth claims lack credibility (could mean growth from 8-9 to 17 units); minimal scale and network effects
  4. 04MINORHigh franchise fee ($52,000) combined with wide investment range ($92,525–$166,500) suggests unclear cost structure and inconsistent startup guidance
  5. 05MED6% royalty on undisclosed revenue provides no way to assess true profitability or franchisor sustainability
  6. 06MINOREarly-stage franchise with minimal franchisee base limits peer reference availability and institutional knowledge
  7. 07HIGHNo litigation disclosed does not equal clean history; newly formed systems often lack lawsuit history simply due to age

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.