Legato Living
Bottom line
- Total investment $164K – $363K including a $150K franchise fee, 50.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated AVOID with a risk score of 81/100. SBA loan default rate of 0.0% across 10 loans (below the industry average).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Legato Living unit return on the cash you put in?
Unlevered ROIC · per unit
-60%
Negative
Overview
About
Legato Living franchisees operate senior living or assisted living community management operations. Day-to-day activities likely include resident care coordination, facility management, marketing to prospective residents, staff supervision, and compliance with healthcare regulations. The specific service model is unclear given the minimal unit count and lack of disclosed operational metrics.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Legato Living presents extreme risk: a 2-unit system with going concern warnings, undisclosed financials, no territory protection, and a predatory 50% royalty structure that signals a failing franchise model.
Score breakdown · what drove the 81 / 100 rating
- 01HIGHGoing Concern warning indicates franchisor financial distress or viability questions
- 02MINOROnly 2 units systemwide suggests failed or stalled franchise system with no growth trajectory
- 03MINORNo average revenue or net income disclosure prevents ROI validation and suggests poor unit performance
- 04MINOR50% royalty on net fees is extremely high and creates misaligned incentives between franchisor and franchisees
- 05MINORNo territory protection exposes franchisees to direct competition from other franchisees and franchisor
- 06MINORZero franchise fee with high initial investment suggests franchisor prioritizes capital extraction via ongoing royalties over sustainable partnerships
- 07MINORUnknown growth history with only 2 units indicates system may be contracting or failed to scale
- 08MINOR10-year term locks franchisees into relationship with financially unstable franchisor
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
1 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Legato Living · FDD (2022) PDF