B58/100FDD 2025
Interim Healthcare — Litigation & Risk
Health & Wellness - Senior Care · FDD Items 3, 4 & 5
Elevated Risk
7 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
7
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
58 / 100
FranchiseVerdict composite
Rating
MODERATE
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
42
Government-backed loans issued
Default rate
16.0%
vs <3% typical · system-wide
5-yr default rate
33.3%
Defaults
4 loans
Loans charged off or defaulted
Total loan volume
$22.5M
Avg loan size
$537K
Participating lenders
22
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
Florida
State whose law governs disputes — relevant if you're not based there
What drove the 58/100 rating
Risk Score Breakdown
- 01MINORDeclining unit count (-3.4% YoY) suggests system contraction and potential franchisee struggles
- 02MEDNo average net income disclosed in Item 19 prevents realistic ROI assessment despite $156k-$628k investment range
- 03HIGHMultiple litigation categories including wrongful death notice, wage/hour disputes, and historical consent decree indicate operational and compliance risks
- 04MINORTiered royalty structure (3.25%-5.5%) creates variable profitability uncertainty; higher rates on non-Medicare sales may squeeze margins
- 05MINORHome healthcare/hospice industry faces increasing regulatory scrutiny, labor cost inflation, and reimbursement pressure
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.