FranchiseVerdict
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B55/100FDD 2026

Trua Senior Living Locators — Litigation & Risk

Health & Wellness - Senior Care · FDD Items 3, 4 & 5

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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
55 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

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
Kentucky
State whose law governs disputes — relevant if you're not based there

What drove the 55/100 rating

Risk Score Breakdown

  1. 01MINOROnly 5 units in system with extreme 300% YoY growth suggests minimal historical track record and unproven scalability
  2. 02MINORNo protected territory creates direct competition risk and cannibalization between franchisees in same market
  3. 03MEDMinimum monthly royalty fee requirement structure not disclosed—unclear floor obligation could strain cash flow
  4. 04HIGHGoing Concern status is False, indicating potential financial distress or operational instability at franchisor level
  5. 05MINORItem 19 (Financial Performance Representations) appears absent—avg revenue/net income figures cannot be verified against FDD disclosures
  6. 06MINORHigh franchise fee ($52,500) relative to only 5 existing units raises questions about franchisor viability and support infrastructure
  7. 07MED8% royalty on $493K avg revenue = $39.5K annual royalty burden plus undisclosed minimum fee creates profitability pressure

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.