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Care With Love

Care With Love Elite, LLC
https://carewithlove.com
1-703-665-1130
10505 Braddock Rd Suite 4A, Fairfax, VA 22032

How much does Care With Love cost?

Initial Investment Range

$132,043 to $207,268

Franchise Fee

$50,000

The Franchisee will own and operate a business providing non-medical, personal care services to clients in their homes or other residences, using the trade name or trademark, CARE WITH LOVE.

Enjoy our partial free risk analysis below

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Care With Love March 24, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: August 21, 2025

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

1

Franchisor Stability Risks

Start Here
Total: 10
2
3
5

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor, CARE WITH LOVE ELITE, LLC (CWLE), explicitly discloses its financial condition as a special risk. Audited financial statements for year-end 2024 show a negative members' equity (deficit) of ($23,389). This financial state may call into question its ability to provide promised support, invest in the brand, and fulfill its obligations to you, potentially making it reliant on new franchise sales for operating capital.

Potential Mitigations

  • Your accountant must thoroughly review the audited financial statements, including the footnotes and the nature of the company's deficit and cash flows.
  • Discuss the implications of the franchisor's negative equity and the explicit 'Financial Condition' risk factor with your franchise attorney.
  • Seeking advice from a business advisor on the franchisor's long-term viability before investing is highly recommended.
Citations: Item 1, Item 21, FDD Exhibit C, FDD Exhibit D

High Franchisee Turnover

Medium Risk

Explanation

As a very new franchise system that began selling franchises in 2022, there is not enough historical data in Item 20 to establish a meaningful trend for franchisee turnover. The table shows only one franchisee has been operating for a full year, with no terminations, non-renewals, or other cessations. The lack of a track record itself is a risk, as the stability and long-term success of franchisees within this system is unproven.

Potential Mitigations

  • It is crucial to speak with the single operating franchisee listed in Item 20 to understand their experience with the system and its support.
  • A business advisor can help you analyze the risks inherent in joining a new system with limited franchisee performance data.
  • Your attorney should advise on negotiating protections in the franchise agreement to account for the unproven nature of the system.
Citations: Item 20

Rapid System Growth

Low Risk

Explanation

This risk was not identified in the FDD package. Rapid growth can strain a franchisor's ability to provide adequate support. While CWLE is a new system, Item 20 shows very slow growth to date (one operating franchisee), so the risks associated with rapid expansion do not currently appear to be present. However, this could change in the future.

Potential Mitigations

  • Your business advisor can help you monitor the system's growth rate against the franchisor's expansion of its support staff and infrastructure.
  • Discussing the franchisor's controlled growth strategy and support capabilities with your attorney is a valuable step.
  • In discussions with existing franchisees, it's wise to ask about the quality and timeliness of support they currently receive.
Citations: Item 20, Item 21, FDD Exhibit C

New/Unproven Franchise System

High Risk

Explanation

CWLE is a new and unproven franchise system, having been formed in August 2021 and beginning to offer franchises in 2022. As of late 2024, there is only one operating franchisee. This limited history means the business model's success for franchisees is not yet demonstrated, and the support systems may be underdeveloped. Investing in a new system carries higher intrinsic risk than joining an established one.

Potential Mitigations

  • A thorough due diligence process, guided by your business advisor, is critical to vet the concept's viability.
  • Engaging an attorney to negotiate more favorable terms, such as enhanced support commitments, may help offset the higher risk.
  • Speaking with the earliest franchisees listed in Item 20 is essential to gather firsthand information on their experience.
Citations: Item 1, Item 2, Item 20

Possible Fad Business

Low Risk

Explanation

This risk was not identified in the FDD package. The non-medical home care industry is an established sector with long-term demand driven by demographics, not a temporary trend. Therefore, the risk of the business model being a short-lived fad appears to be low. However, competitive pressures within this established market are still a significant factor to consider.

Potential Mitigations

  • Working with a business advisor to research the long-term demand and competitive landscape for home care services in your specific market is recommended.
  • An accountant can help you model the financial sustainability of the business beyond any short-term market fluctuations.
  • Your attorney can review whether the franchise agreement allows you to adapt services to meet evolving local needs.
Citations: Item 1

Inexperienced Management

Medium Risk

Explanation

While the franchisor's principals have been operating an affiliate company in the same industry since 2014, their experience in managing a franchise system is very limited, beginning only in 2021. This lack of a track record in franchising could present risks, as managing a network of independent franchisees requires different skills and support systems than running a company-owned operation. The effectiveness of their training and support for franchisees is largely unproven.

Potential Mitigations

  • Inquiring with the single operating franchisee about the quality and relevance of the training and support provided is essential.
  • A business advisor can help you evaluate whether the management team's skills will translate effectively to supporting a franchise network.
  • Your attorney should scrutinize the franchisor's specific support obligations detailed in the Franchise Agreement.
Citations: Item 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD package. Item 1 indicates the franchisor and its parent company are private LLCs and does not disclose any ownership by a private equity firm. This means the specific risks associated with a PE firm's typical investment strategy and exit timeline do not appear to be present.

Potential Mitigations

  • It is always prudent to have your attorney confirm the ownership structure of the franchisor as disclosed in Item 1.
  • A business advisor can help you research the background of the principal owners to understand their business philosophy and long-term commitment.
  • Your attorney can explain the transfer rights in the agreement, which apply regardless of ownership structure.
Citations: Not applicable

Non-Disclosure of Parent Company

Medium Risk

Explanation

Item 1 discloses a parent company, CARE WITH LOVE ALL CARE, LLC, but its financial statements are not provided in Item 21. While not always required, the absence of parent financials can obscure the full financial picture, especially when the franchisor entity itself has negative equity. The true financial strength backing the system remains partially unclear without information on the parent company that owns the franchisor and the intellectual property.

Potential Mitigations

  • Your accountant should assess the risk presented by the franchisor's negative equity in the absence of a parent company financial guarantee or their financials.
  • An attorney can help you inquire about the financial condition of the parent company and its commitment to supporting the franchise system.
  • A business advisor can help you understand the potential risks related to a complex affiliate and parent company structure.
Citations: Item 1, Item 21, FDD Exhibit C

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD package. Item 1 states that CWLE has no predecessors from which it acquired assets or that previously offered franchises for this system. Therefore, there is no hidden history of past failures, litigation, or turnover associated with a predecessor entity.

Potential Mitigations

  • Your attorney can verify the franchisor's corporate history to confirm the 'no predecessor' disclosure is accurate.
  • Speaking with a business advisor can help you understand that while there is no predecessor history, the lack of any long history is its own risk.
  • Focus due diligence on the current management team's experience and the performance of the affiliate operations.
Citations: Item 1

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD package. Item 3 discloses that there has been no material litigation against the franchisor or its management. For a new franchise system, this is not unusual, but it also means there is no track record to evaluate how the franchisor handles disputes with its franchisees.

Potential Mitigations

  • Your attorney should confirm that no undisclosed litigation exists through independent searches.
  • Talking with a business advisor about the dispute resolution clauses is important to understand how future conflicts would be handled.
  • It is still critical to speak with the existing franchisee to gauge their satisfaction and inquire about any disagreements, even if they did not lead to litigation.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
7
2
6

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
5
3
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.

4

Legal & Contract Risks

Total: 16
7
6
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.

5

Territory & Competition Risks

Total: 5
4
1
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
5
4
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.

7

Franchisor Support Risks

Total: 4
2
2
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.

8

Operational Control Risks

Total: 12
4
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

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

9

Term & Exit Risks

Total: 18
9
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.

10

Miscellaneous Risks

Total: 2
1
1
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.