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B61/100FDD 2025

Next Health — 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
61 / 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
Delaware
State whose law governs disputes — relevant if you're not based there

What drove the 61/100 rating

Risk Score Breakdown

  1. 01MINOROnly 5 units in system with unknown growth trajectory suggests early-stage or stalling franchise
  2. 02HIGHNo Item 19 financial performance representation (Going Concern = False) limits ability to validate claimed averages
  3. 03MINORHigh initial investment ($1.6M-$2.2M) paired with only 5 franchisees raises questions about unit economics and scalability
  4. 04MINOR9% royalty on $4M average revenue = $360K annually, creating cash flow pressure for breakeven franchisees
  5. 05MEDExtremely limited franchisee sample size (5 units) makes financial averages statistically unreliable and potentially cherry-picked
  6. 06MINORUnknown growth rate indicates franchisor may not be actively recruiting or expanding, suggesting market validation issues

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.