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D75/100FDD 2025

New Life 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
75 / 100
FranchiseVerdict composite
Rating
CAUTION
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
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
Maryland
State whose law governs disputes — relevant if you're not based there

What drove the 75/100 rating

Risk Score Breakdown

  1. 01HIGHGoing concern issue — franchisor has material doubt about ability to continue operations
  2. 02MINORNo financial disclosure (Item 19) — cannot validate average unit economics or profitability claims
  3. 03MINORExtremely small system (5 units) — insufficient scale, high franchisor dependency risk, minimal network support
  4. 04MEDNo disclosed unit growth history — unable to assess system momentum or franchisee success rates
  5. 05MINORHigh initial investment ($109k–$202k) relative to 5-unit system size — capital intensity without proven ROI
  6. 06MINORSenior care is highly regulated and liability-intensive — operational complexity not reflected in franchise structure
  7. 07MED6% royalty on undisclosed revenue — cannot calculate break-even or profit margin impact

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.