B55/100FDD 2025
Your Choice Senior Care — Litigation & Risk
Health & Wellness - Senior Care · FDD Items 3, 4 & 5
Moderate — Review
1 case disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
1
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
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
7
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
Alabama
State whose law governs disputes — relevant if you're not based there
What drove the 55/100 rating
Risk Score Breakdown
- 01MINORUnit count declining 11.1% year-over-year (8 units) suggests system contraction and potential franchisee dissatisfaction
- 02MEDNet income not disclosed in Item 19 prevents accurate ROI calculation on $87,800–$150,500 investment
- 03HIGHRecent litigation (2020–2021) involving franchisor raises questions about operational practices and franchisee relations
- 04MEDHigh royalty rate (5%) on disclosed $781,785 average revenue may compress margins in capital-intensive senior care business
- 05MINORSmall franchise system (8 units) limits support infrastructure and brand recognition in competitive senior care market
- 06MINOR10-year term locks franchisees into relationship with shrinking system; exit options unclear
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.