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A31/100FDD 2025

Vital Care — Litigation & Risk

Other · 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
31 / 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
50
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$47.7M
Avg loan size
$954K
Participating lenders
14

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

What drove the 31/100 rating

Risk Score Breakdown

  1. 01MINORNo net income disclosure (Item 19) prevents accurate ROI assessment despite high average revenue of $16.5M
  2. 02MINORTiered royalty structure (1.75%-19.25%) is complex and potentially punitive; additional 0-2% kick-in at $10M revenue creates perverse incentive against growth
  3. 03MINORExplosive 45.9% YoY unit growth (110 units) suggests either rapid market expansion or aggressive recruitment; sustainability and franchisee profitability unknown
  4. 04HIGHGoing Concern status is FALSE — indicates financial instability or structural concerns at franchisor level
  5. 05MINORHigh initial investment ($555K-$1M) combined with multi-tiered royalties creates significant cash flow risk if franchisee falls below specialty/access categories

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.