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Options For Senior America

Options For Senior America Franchising, LLC
https://www.optionscorp.com/franchise
1-301-562-1100
6 Montgomery Village Avenue, Suite 330, Gaithersburg, MD 20879

Initial Investment Range

$85,800 to $144,150

Franchise Fee

$47,500 to $81,250

As an OPTIONS FOR SENIOR AMERICA® franchisee, you will provide in-home care services to families to care for one of their loved ones.

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Options For Senior America February 10, 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
2
4
4

Disclosure of Franchisor's Financial Instability

Medium Risk

Explanation

The franchisor entity, Options For Senior America Franchising, LLC (Options LLC), is newly formed and acquired the system in April 2024. While the new entity appears well-capitalized, its own operating history is very limited, and its 2024 net income was nominal. An auditor's report noted a prior period error correction. This recent ownership change and limited track record under new management could pose a risk to operational consistency and support, despite the predecessor's profitability.

Potential Mitigations

  • An experienced franchise accountant should analyze the financial statements of both the new entity and its predecessor, focusing on the implications of the acquisition.
  • Discuss the new ownership's long-term strategy and commitment to franchisee support with your business advisor.
  • Your attorney should clarify the details of the April 2024 reorganization and any ongoing obligations from the predecessor entity.
Citations: Item 1, Item 21, Exhibit F

High Franchisee Turnover

High Risk

Explanation

Item 20 data reveals a significant risk. In 2023, the system experienced a very high turnover rate, with 3 of the 13 beginning-of-year franchised outlets either terminated or ceasing operations. This 23% negative churn is a critical red flag that may indicate underlying issues with the business model, franchisee profitability, or support under the previous ownership. While 2024 showed growth with no closures, the prior year's performance warrants extreme caution as it could signal systemic problems.

Potential Mitigations

  • You must contact a significant number of former franchisees from the list in Exhibit E to understand why they left the system.
  • A thorough analysis of the multi-year turnover data with your accountant is essential to assess the system's historical stability.
  • Your attorney should help you formulate questions for the franchisor regarding the specific circumstances of the 2023 terminations and closures.
Citations: Item 20

Rapid System Growth

Low Risk

Explanation

The FDD does not indicate that the franchise system is growing at a pace that might outstrip its ability to provide support. While there was growth in 2024, it does not appear to be dangerously rapid. A franchisor expanding too quickly can sometimes lead to diluted support, training, and resources for all franchisees as the corporate team struggles to keep up with the needs of many new owners.

Potential Mitigations

  • It is still wise to discuss the franchisor's growth plans and capacity for scaling support with your business advisor.
  • Posing questions to both new and established franchisees about the quality and timeliness of corporate support can provide valuable insight.
  • An accountant can help assess if the franchisor's financial resources are adequate for their stated expansion goals.
Citations: Not applicable

New/Unproven Franchise System

Medium Risk

Explanation

While the franchise system has operated since 2015, the current franchisor entity and its leadership are very new, having acquired the system in April 2024. This presents the risks associated with a new franchisor managing an established brand. The success of the system going forward depends on the execution of this new leadership team, whose direct track record with this specific franchise is limited. This could impact support quality and strategic direction.

Potential Mitigations

  • Investigating the new ownership's background and track record in managing service-based businesses is a prudent step for your business advisor.
  • It is important to ask the franchisor directly about their plans for the system and how they intend to support franchisees.
  • Consulting with your attorney regarding the implications of the recent ownership change on the Franchise Agreement is advisable.
Citations: Item 1, Item 2, Item 21

Possible Fad Business

Low Risk

Explanation

This risk was not identified in the FDD package. The in-home senior care industry is a well-established sector driven by long-term demographic trends, not short-term fads. Investing in a fad-based business is risky because consumer interest can disappear quickly, leaving you with a long-term contract for a business with no demand. It is important to assess the long-term viability of any business concept before investing.

Potential Mitigations

  • A business advisor can help you research long-term market trends for any industry you consider entering.
  • Evaluating a business model’s resilience to economic shifts and changing consumer tastes is a crucial step.
  • Your financial advisor can help assess if a concept has sustainable demand beyond any initial hype.
Citations: Not applicable

Inexperienced Management

Medium Risk

Explanation

The new Co-CEOs have private equity and marketing backgrounds, but their direct experience operating a home care franchise system is new as of 2024. Although the former, experienced owners are retained as senior advisors, the ultimate strategic control and day-to-day executive decisions rest with this new team. This transition in leadership introduces a risk related to their ability to effectively manage the specific challenges of this industry and franchise model.

Potential Mitigations

  • A thorough due diligence discussion with the new leadership about their vision and support plans is essential.
  • Speaking with current franchisees about their interactions with the new management can provide your business advisor with valuable perspectives.
  • Your attorney can help you understand the roles and influence of the new CEOs versus the retained senior advisors.
Citations: Item 2

Private Equity Ownership

Medium Risk

Explanation

The professional backgrounds of the new Co-CEOs, with experience at firms like Blackstone and LLR Partners, suggest a private equity approach to this investment. This can create a risk that decisions may prioritize short-term financial returns for investors, potentially through higher fees or reduced support, over the long-term health and profitability of franchisees. The focus may be on preparing the company for a future sale rather than sustainable franchisee success.

Potential Mitigations

  • Your business advisor should research the track record of the executives' former firms with other franchise or service brands.
  • It is important to ask current franchisees if they have observed any changes in fees, support, or system philosophy since the acquisition.
  • Legal counsel should review the franchisor's rights to sell or assign the system and the potential impact on your agreement.
Citations: Item 1, Item 2

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified, as Item 1 clearly states that the franchisor has no parent companies. In some franchise systems, a thinly capitalized subsidiary acts as the franchisor, while a wealthier parent company is not disclosed or does not guarantee the franchisor's obligations. This can mask financial instability and leave franchisees with little recourse if the franchisor fails. A thorough review of the corporate structure is always important.

Potential Mitigations

  • Your attorney can verify the corporate structure and ensure there are no undisclosed controlling entities.
  • If a parent company exists and provides a guarantee, an accountant should review its financial statements carefully.
  • It is wise for a business advisor to help you understand the full corporate family and how it might impact your franchise.
Citations: Not applicable

Predecessor History Issues

High Risk

Explanation

The system has a predecessor history under a different ownership entity. While financial statements for this predecessor are provided, the most significant issue is the high franchisee turnover that occurred in 2023 under their management, as shown in Item 20. This negative history, particularly the high rate of terminations and cessations, is a critical risk factor that the new ownership has inherited. You must investigate the reasons for this past instability.

Potential Mitigations

  • Engaging your attorney to help you question the new franchisor about the causes of the predecessor's high turnover is crucial.
  • You should speak with franchisees who operated under the predecessor to understand the historical challenges of the system.
  • An accountant can help compare the financial performance and practices of the predecessor with the new entity's projections and plans.
Citations: Item 1, Item 20, Exhibit F

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD, as Item 3 states there is no disclosable litigation. A pattern of lawsuits, especially those initiated by franchisees alleging fraud or misrepresentation, can be a major red flag indicating systemic problems. Likewise, a high number of lawsuits initiated by the franchisor against franchisees can suggest an overly aggressive or litigious culture. The absence of such litigation is a positive indicator for this franchise.

Potential Mitigations

  • An attorney can perform independent searches for litigation that may not have met the criteria for disclosure in Item 3.
  • Asking current and former franchisees about any past or pending legal disputes is a key part of due diligence.
  • A business advisor can help assess if the franchisor's culture seems supportive or confrontational based on franchisee interviews.
Citations: Not applicable
2

Disclosure & Representation Risks

Total: 15
2
3
10

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
1
5
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: 16
11
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.

5

Territory & Competition Risks

Total: 5
1
2
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
6
0
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.

7

Franchisor Support Risks

Total: 4
1
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.

8

Operational Control Risks

Total: 12
6
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.

9

Term & Exit Risks

Total: 18
11
4
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.

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.