D75/100FDD 2025
Prime Senior Placement — Litigation & Risk
Health & Wellness - Senior Care · FDD Items 3, 4 & 5
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
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
1
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$150K
Avg loan size
$150K
Participating lenders
1
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
Not waived
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
Alabama
State whose law governs disputes — relevant if you're not based there
What drove the 75/100 rating
Risk Score Breakdown
- 01HIGHGoing concern status indicates franchisor financial distress or viability questions
- 02MEDOnly 4 units systemwide with no disclosed average revenue or net income — impossible to validate ROI on $75k-$113k investment
- 03MINORNo Item 19 (earnings claims) provided — franchisees have zero baseline to project profitability
- 04MINORUnprotected territory creates direct competition risk, especially problematic in senior placement services with local market saturation concerns
- 05MEDRoyalties of $1,000-$3,000/month represent 12-48% of typical senior placement margins, viability depends entirely on undisclosed revenue
- 06MINORMicro-franchisee base (4 units) means minimal track record; 200% YoY growth from 2 to 4 units is statistically meaningless
- 07MINOR10-year term locks franchisee into relationship with financially unstable franchisor without performance guarantees
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.