Always Best Care Senior Services Logo

Always Best Care Senior Services

ABCSP, LLC
https://www.alwaysbestcare.com
1-888-430-2273
1406 Blue Oaks Blvd, Roseville, CA 95747

Initial Investment Range

$89,725 to $145,900

Franchise Fee

$49,900

We offer franchises for the operation of a business that will provide the public with non-medical in-home personal care, skilled in-home nursing services and senior living/assisted living/residential care referral services using our distinctive system under the name "Always Best Care Senior Services."

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Always Best Care Senior Services April 11, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: July 16, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
3
2
5

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor explicitly discloses that its financial condition “calls into question the Franchisor’s financial ability to provide services and support to you.” The audited financial statements in Exhibit F confirm this, showing a significant members' deficit (negative net worth) of over $5.3 million for fiscal year 2024. This indicates the company's liabilities exceed its assets, posing a substantial risk to its long-term ability to support franchisees, although a parent company guarantee is provided.

Potential Mitigations

  • A franchise accountant must conduct a thorough analysis of the parent company's audited financial statements to assess the strength of its guarantee.
  • It is crucial for your attorney to review the specific terms of the parent company guarantee to understand its scope and any limitations.
  • Discuss the franchisor's financial health and its plans for achieving stability with current franchisees.
Citations: Special Risks to Consider About This Franchise, Item 21, Exhibit F

High Franchisee Turnover

Medium Risk

Explanation

Item 20 data for the past three years does not indicate a high rate of terminations, non-renewals, or other cessations. In 2023, the system had a very low churn rate of approximately 1.7%. However, the franchisor's disclosed financial weakness is a significant underlying risk that could potentially lead to higher franchisee turnover in the future if support deteriorates. The number of transfers is also notable, which can sometimes mask distress sales.

Potential Mitigations

  • You should contact former franchisees, especially those who transferred their business, to understand their reasons for leaving the system.
  • Engaging a business advisor to review the Item 20 tables in conjunction with the Item 21 financials can provide a more complete picture of system health.
  • Your accountant can help calculate the true turnover rates, including transfers, over the last three years to identify any concerning trends.
Citations: Item 20

Rapid System Growth

Medium Risk

Explanation

The franchise system is experiencing significant growth, with the number of outlets increasing by over 19% in the last two years and systemwide revenue growing substantially. While growth is often positive, this rate of expansion, when coupled with the franchisor's disclosed financial weakness and negative net worth, could strain its ability to provide adequate training and support to all franchisees. Rapid growth can sometimes outpace the development of necessary support infrastructure.

Potential Mitigations

  • In your discussions with current franchisees, specifically ask both new and established operators about the quality and responsiveness of the franchisor's support.
  • A business advisor can help you assess whether the franchisor's support systems, as described in Item 11, appear robust enough for this growth.
  • It's wise to question the franchisor directly about how they are scaling their support infrastructure to match the pace of unit growth.
Citations: Item 20, Item 21

New/Unproven Franchise System

Low Risk

Explanation

This risk was not identified in the FDD package. The franchisor, ABCSP, LLC (ABCSP), began its franchise operations in December 2007, indicating it is a mature and established system. An unproven system can pose a higher risk due to the lack of a long-term performance track record, underdeveloped support systems, and lower brand recognition, which could impact your potential for success. This does not appear to be a concern here.

Potential Mitigations

  • When evaluating any franchise, it is beneficial to have a business advisor help you assess the franchisor's history and the maturity of its systems.
  • An attorney can review the franchisor's corporate history in Item 1 to confirm its experience in the industry.
  • You should always verify the franchisor's claims about its history by speaking with long-standing franchisees.
Citations: Not applicable

Possible Fad Business

Low Risk

Explanation

This risk was not identified in the FDD package. The senior in-home care and assisted living referral industry is supported by long-term demographic trends in an aging population. This suggests a sustained market need rather than a temporary or fad-based business model. A fad business carries the risk that consumer interest will decline, potentially leaving you with a worthless investment while still being bound by your franchise agreement.

Potential Mitigations

  • For any business concept, having a business advisor help you conduct independent market research is vital to confirm long-term consumer demand.
  • You should always assess a business model's resilience to economic shifts and changing consumer tastes.
  • Reviewing a franchisor's plans for innovation and adaptation in Item 11 with a business advisor can help gauge its long-term vision.
Citations: Not applicable

Inexperienced Management

Low Risk

Explanation

This risk was not identified in the FDD package. Item 2 shows that the key executives have extensive and long-term experience in both the senior care industry and in franchising. For example, the Executive Chairman has been involved since 1996 and the President/CEO since 2010. Inexperienced management can be a significant risk, as it may lead to poor strategic decisions, inadequate franchisee support, and an unrefined business model.

Potential Mitigations

  • It is always a good practice to research the backgrounds of the key executives listed in Item 2.
  • A discussion with a business advisor can help you evaluate whether the management team's experience aligns with the franchise's specific needs.
  • Speaking with current franchisees can provide valuable insight into the competence and effectiveness of the franchisor's leadership team.
Citations: Not applicable

Private Equity Ownership

High Risk

Explanation

Item 1 discloses that the franchisor's parent company is majority-owned by Gemini Investors VI, L.P., a private equity firm. This ownership structure may create a focus on short-term financial returns for investors, which could potentially lead to decisions that are not in the long-term best interests of franchisees, such as reducing support to cut costs or increasing fees to boost revenue. The franchisor's financial instability, as noted in Item 21, could heighten this risk.

Potential Mitigations

  • A business advisor can help you research the private equity firm's reputation and its track record with other franchise systems it has owned.
  • When speaking with franchisees, ask about any changes in franchisor support, culture, or fee structures since the private equity acquisition.
  • Your attorney should analyze the franchisor's right to sell the system and what protections you have if a new owner takes over.
Citations: Item 1, Item 21

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified in the FDD package. The franchisor's parent company, ABCSS Holdings, LLC, is clearly disclosed in Item 1, and its audited financial statements are provided as required in Item 21 and Exhibit F. A failure to disclose a parent company or provide its financials when required can obscure the true financial backing and stability of the franchise system, hiding significant risks from a prospective franchisee.

Potential Mitigations

  • Always have an attorney verify that the corporate structure described in Item 1 is complete and that all required financial statements are included in Item 21.
  • If a parent company guarantees the franchisor's obligations, it is critical that your accountant reviews the parent's financials.
  • Your attorney can help you understand the relationships between the franchisor, parent, and any affiliates.
Citations: Not applicable

Predecessor History Issues

Low Risk

Explanation

Item 1 discloses that the franchisor had a predecessor, Newman Capital Investments, LLC, which merged with the current entity in 2007. The FDD provides basic information about this predecessor. While no negative history is attributed to the predecessor in this document, it is important to be aware of the system's full lineage. The more significant litigation history involves the current franchisor entity itself, as disclosed in Item 3.

Potential Mitigations

  • It's a good practice to ask long-tenured franchisees about their experiences under any previous ownership or predecessor entities.
  • A discussion with your attorney can help clarify the legal implications of a merger or asset acquisition from a predecessor.
  • Your business advisor can help you investigate the history of the brand under any prior ownership structures.
Citations: Item 1

Pattern of Litigation

High Risk

Explanation

Item 3 discloses a significant history of legal and regulatory actions. This includes a 2012 Consent Order with the FTC for misrepresentation in advertising and a 2010 Maryland Consent Order for selling franchises without proper registration. Additionally, the franchisor settled three separate arbitrations in 2017 with its own Area Representatives who alleged breach of contract. This pattern suggests past issues with both regulatory compliance and contractual relationships, posing a risk to franchisees.

Potential Mitigations

  • A franchise attorney must carefully analyze the details and potential implications of all past litigation and governmental actions.
  • In discussions with current franchisees, you should ask about the issues that led to this litigation to see if they persist.
  • Consider this litigation history a significant red flag and discuss the potential risks to your own investment with your attorney.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
2
2
11

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
2
6
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

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4

Legal & Contract Risks

Total: 16
6
6
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
2
3
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
4
3
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
0
3
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
3
7
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
10
8
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 2
2
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.