D68/100FDD 2026
Preferred Care At Home — Litigation & Risk
Health & Wellness - Senior Care · FDD Items 3, 4 & 5
Moderate — Review
4 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
4
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
68 / 100
FranchiseVerdict composite
Rating
CAUTION
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
6
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$2.2M
Avg loan size
$366K
Participating lenders
6
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
Tennessee
State whose law governs disputes — relevant if you're not based there
What drove the 68/100 rating
Risk Score Breakdown
- 01HIGHGoing concern warning indicates franchisor financial distress and potential inability to support franchisees
- 02MINORThree franchisee arbitration cases alleging breach of contract resolved through Chapter 11 reorganization suggests systemic franchisor issues and broken promises
- 03MEDAverage revenue of $108,598.52 is barely above the first royalty tier threshold ($110,000), indicating most franchisees operate at minimum profitability with limited upside
- 04MEDNo disclosed average net income prevents assessment of actual franchisee profitability relative to $83,500-$111,500 investment
- 05MINOROnly 130 units with unknown growth trajectory suggests stagnant or declining system during period when home care franchises expanded
- 06HIGHDeclining unit count inferred from Chapter 11 reorganization and litigation pattern indicates system contraction and franchisor instability
- 07MEDRoyalty structure (5% on first tier) combined with low average revenues means limited margin for franchisee profit after royalties, rent, payroll, and insurance
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.