A39/100FDD 2026
SYNERGY HomeCare — 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
39 / 100
FranchiseVerdict composite
Rating
STRONG
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
71
Government-backed loans issued
Default rate
9.8%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
4 loans
Loans charged off or defaulted
Total loan volume
$18.4M
Avg loan size
$259K
Participating lenders
32
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
Arizona
State whose law governs disputes — relevant if you're not based there
What drove the 39/100 rating
Risk Score Breakdown
- 01MINORNo Item 19 (Average Net Income) disclosure — impossible to validate actual profitability despite $2.1M avg revenue claim
- 02MEDHigh initial investment ($80K–$164K) relative to disclosed net income — ROI timeline unclear
- 03MINOR626 units with 13.8% YoY growth suggests rapid expansion; typical mature franchises grow 3–7% YoY, raising sustainability concerns
- 04MINOR5-year term is shorter than industry standard (10 years), increasing renewal/renegotiation risk
- 05HIGH'Going Concern' status listed as False — unusual language that may indicate financial instability of franchisor
- 06HIGHNo litigation disclosed but home care is high-litigation industry (employment, patient safety); absence of claims is atypical
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.