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D72/100FDD 2025
Seva Senior Home Care Services — 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
72 / 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
2
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
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
Virginia
State whose law governs disputes — relevant if you're not based there
What drove the 72/100 rating
Risk Score Breakdown
- 01MINOROnly 2 units in system with unknown growth trajectory suggests minimal scale and potential system contraction risk
- 02MEDNo average revenue or net income disclosure (missing Item 19) makes ROI evaluation impossible and indicates weak franchisee performance data
- 03HIGHGoing Concern status is False, signaling potential financial viability issues at franchisor level
- 04MINORWide investment range ($109.5K–$277K) with unclear cost drivers suggests inadequate financial transparency and planning
- 05MINORMicro-franchise system (2 units) provides insufficient data to validate business model sustainability or franchisee success rates
- 06MINORSenior home care is high-touch, regulated, and labor-intensive—5% royalty may be insufficient for adequate franchisor support infrastructure
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.