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D72/100FDD 2023

Meraki Assisted Living — Litigation & Risk

Health & Wellness - Senior Care · 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
72 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

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
No
Franchisor can match any purchase offer when you try to sell
Governing law
Minnesota
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status is FALSE — indicates franchisor financial distress or viability questions
  2. 02MINOROnly 7 units system-wide with unknown growth trajectory — extremely small and potentially stagnant network
  3. 03MEDNet Income not disclosed in FDD Item 19 — cannot verify actual profitability claims against $918k average revenue
  4. 04MINORWide investment range ($129k-$627k, 4.9x spread) suggests inconsistent unit economics or unclear cost structure
  5. 05MINORHigh royalty burden at 7% of revenue PLUS $500/unit minimum creates dual fee pressure on thin-margin senior care business
  6. 06MED10-year term with no disclosed unit growth — raises sustainability and franchisee exit concerns
  7. 07MINORAssisted living is highly regulated, labor-intensive business with significant liability exposure — not addressed in provided data

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.