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Griswold Home Care

Griswold International, LLC
https://www.griswoldhomecare.com
1-215-402-0200
510 East Township Line Road, Suite 210, Blue Bell, Pennsylvania 19422

How much does Griswold Home Care cost?

Initial Investment Range

$99,600 to $180,600

Franchise Fee

$49,500 to $54,500

The franchise offered is for the establishment and operation of a 'Griswold' business which provides carefully screened, trained, licensed, insured, bonded, and credentialed individuals to clients seeking 'Caregivers' to provide personal care, homemaking, companion care, incidental transportation, and other ancillary/supportive services to older adults, and ill or disabled persons who need extra assistance with activities of daily living.

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Griswold Home Care April 18, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: August 22, 2025

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

1

Franchisor Stability Risks

Start Here
Total: 10
3
3
4

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor’s audited financial statements for 2024 show a net loss of nearly $3 million and a significant increase in current liabilities, driven by a $4.2 million settlement expense. This operating loss and weakened balance sheet may raise questions about the company's financial stability and its ability to fund ongoing support, invest in the brand, and weather future economic challenges. Your investment's success is linked to the franchisor's long-term health.

Potential Mitigations

  • A thorough review of the complete financial statements, including all footnotes and the auditor's report, by your accountant is essential.
  • Discuss the franchisor's strategies for returning to profitability and managing its liabilities with your business advisor.
  • Your attorney should inquire if any states have imposed financial assurance requirements, such as bonds or escrow, due to these financial results.
Citations: Item 21, Exhibit F

High Franchisee Turnover

Medium Risk

Explanation

While system-wide growth is positive, Item 20 tables for 2023 show five franchisees in a single state (Connecticut) ceased operations for unspecified reasons. Coupled with the litigation history detailed in Item 3, this could suggest underlying franchisee dissatisfaction or operational challenges not immediately apparent from the headline numbers. Understanding the real reasons for departures is critical to assessing the health of the franchisee-franchisor relationship and the viability of the business model.

Potential Mitigations

  • Speaking with a significant number of former franchisees listed in Exhibit E is crucial to understand their reasons for leaving the system.
  • Your business advisor can help you calculate the effective turnover rate and compare it against any available industry benchmarks.
  • It is important to ask the franchisor for specific details about the circumstances surrounding the outlets that have ceased operations.
Citations: Item 20, Exhibit E

Rapid System Growth

Low Risk

Explanation

The system added 19 net new franchised units in 2024, representing significant growth. However, this expansion occurred while the company posted a substantial operating loss, as shown in Item 21. A potential risk exists that rapid growth could strain the franchisor's financial and personnel resources, possibly affecting the quality and availability of training, field support, and other services for all franchisees, especially if resources are diverted to onboarding new locations.

Potential Mitigations

  • In discussions with current franchisees, you should inquire specifically about the quality and responsiveness of franchisor support as the system has grown.
  • A business advisor can help you assess if the franchisor's support infrastructure, as described in Item 11, appears adequate for its current size and growth rate.
  • Your accountant should review the franchisor's spending on support-related activities relative to its revenue growth.
Citations: Item 11, Item 20, Item 21

New/Unproven Franchise System

Low Risk

Explanation

This risk was not identified. The franchisor, Griswold International, LLC (Griswold), and its predecessors have been in operation since 1982 and franchising since 1986, as stated in Item 1. An unproven system can be risky due to the lack of an established track record, refined operational procedures, and brand recognition, which can heighten the potential for business failure. This does not appear to be the case here.

Potential Mitigations

  • Even with an established brand, consulting a business advisor to create a detailed business plan is a critical step for any new venture.
  • Reviewing the business experience of the current management team in Item 2 with your attorney can provide insight into their leadership of the established system.
Citations: Not applicable

Possible Fad Business

Low Risk

Explanation

This risk was not identified. The business offers in-home personal and companion care services for older adults and other persons needing assistance. This industry serves a fundamental and growing demographic need. A fad business, in contrast, relies on a temporary trend, posing a risk that your investment could lose value when public interest fades, even though your contractual obligations would continue.

Potential Mitigations

  • A business advisor can help you research long-term demographic and market trends for home care services in your specific territory.
  • Discussing the stability and future of the home care industry with your financial advisor is a prudent step in your due diligence.
Citations: Not applicable

Inexperienced Management

Medium Risk

Explanation

Item 4 discloses that the current Chief Operating Officer was the CEO and President of a different healthcare company when it filed for Chapter 11 bankruptcy. Furthermore, Item 3 discloses that this same executive was a respondent in an administrative action by the Indiana Securities Division concerning false representations at that prior company. This history, while from a previous engagement, may be a factor to consider when evaluating the experience and track record of the current management team.

Potential Mitigations

  • It is important to discuss the executive's past business history with your attorney to understand its potential implications.
  • In your conversations with current franchisees, you might inquire about their experiences and confidence in the current leadership team.
  • A business advisor can help you assess the overall strength and depth of the entire management team as disclosed in Item 2.
Citations: Item 2, Item 3, Item 4

Private Equity Ownership

High Risk

Explanation

Griswold's parent company is an investment firm, and its board of directors includes principals from private equity and capital management firms. While this can provide access to capital and strategic expertise, it can also introduce a focus on maximizing short-term returns for investors. This might lead to decisions, such as increasing fees or reducing support costs, that could prioritize investor timelines over the long-term health of franchisees.

Potential Mitigations

  • Your business advisor can help you research the private equity firm's reputation and track record with other franchise systems.
  • Speaking with franchisees who have been with the system since before and after the private equity acquisition can provide valuable insight.
  • Your attorney should carefully review the franchisor's rights to sell or assign the franchise system.
Citations: Item 1, Item 2

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified, as the parent company, Griswold Investors, LLC, is disclosed in Item 1. However, the audited financial statements are for the franchisor only, not the parent. The financials also show a significant amount 'Due from Griswold Investors LLC' that is non-interest bearing. Not having the parent's financials could obscure a complete picture of the overall enterprise's financial health, which is a potential risk consideration.

Potential Mitigations

  • Your accountant should analyze the franchisor's financials and consider the implications of the inter-company loan with the parent.
  • Discussing the nature of the relationship and financial support from the parent company with your attorney is advisable.
Citations: Item 1, Item 21, Exhibit F

Predecessor History Issues

Medium Risk

Explanation

Item 3 discloses regulatory enforcement actions against a predecessor entity. The Virginia Division of Securities and Retail Franchising alleged that a predecessor, Special Care, Inc., provided a disclosure document with an untrue statement of material fact in 2004 and offered franchises prior to registration in 2009. While these actions involved a predecessor, they are part of the brand's history and may indicate past compliance issues that are relevant to your due diligence.

Potential Mitigations

  • Your attorney should carefully review the details and outcomes of all litigation and regulatory actions involving predecessor companies.
  • Inquiring with long-term franchisees about their experiences under predecessor management can provide historical context.
  • A business advisor can help you assess how the current franchisor has addressed any inherited systemic issues.
Citations: Item 1, Item 3

Pattern of Litigation

High Risk

Explanation

Item 3 discloses multiple material lawsuits. Most notably, a 2024 arbitration award of over $4.2 million was issued against Griswold for breach of contract, stemming from a dispute with a franchisee. The FDD also details a history of litigation with other franchisees alleging misrepresentation of the business model, which resulted in a $700,000 global settlement. This pattern of significant, franchisee-initiated disputes suggests potential systemic issues and a high-risk legal environment.

Potential Mitigations

  • A thorough review of every disclosed litigation with your franchise attorney is absolutely critical to understand the nature and severity of the claims.
  • Your accountant must consider the financial impact of the recent $4.2 million arbitration award on the franchisor's stability.
  • Treating this extensive litigation history as a major red flag, you should discuss the potential for future disputes with your legal counsel.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
5
4
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
3
3
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.

4

Legal & Contract Risks

Total: 15
3
7
5

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
0
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.

6

Regulatory & Compliance Risks

Total: 10
5
2
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
1
2
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
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.

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: 1
1
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.