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D70/100FDD 2024
Stork Vision® — 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
70 / 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
16.7%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$451K
Avg loan size
$75K
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
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
3 yrs
Post-termination restriction on similar businesses
Franchisor can compete
No
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Texas
State whose law governs disputes — relevant if you're not based there
What drove the 70/100 rating
Risk Score Breakdown
- 01MEDSystem contracting sharply: 16 units with 12.5% YoY decline indicates franchisees are exiting
- 02MINORNo financial disclosure (Item 19): Franchisor refuses to provide average unit revenue or net income — impossible to validate ROI claims
- 03HIGHGoing Concern status is FALSE: Franchisor has material doubt about continued operations or sustainability
- 04MINORHigh fee structure relative to investment size: $35,000 franchise fee + $500 minimum monthly royalty on a $49,850-$110,000 investment creates aggressive cost burden
- 05MINORDeclining unit count in early franchise stage: Losing 2 units from 16-unit base suggests product-market fit or support issues
- 06HIGHNo litigation disclosure provides false comfort: Absence of reported litigation in a declining system may indicate franchisees lack resources to pursue claims or disputes are being settled quietly
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.