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D75/100FDD 2026

Altitude Trampoline Park — Litigation & Risk

Other · FDD Items 3, 4 & 5

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Elevated Risk

8 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
8
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
75 / 100
FranchiseVerdict composite
Rating
CAUTION
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
47
Government-backed loans issued
Default rate
15.8%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
3 loans
Loans charged off or defaulted
Total loan volume
$82.9M
Avg loan size
$1.8M
Participating lenders
20

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
Delaware
State whose law governs disputes — relevant if you're not based there

What drove the 75/100 rating

Risk Score Breakdown

  1. 01MINORStagnant unit growth at 2.9% YoY with only 81 locations suggests market saturation or franchisee underperformance
  2. 02MINORMultiple active personal injury lawsuits and pending arbitration indicate systemic liability exposure and potential operational/safety issues
  3. 03MINORHigh capital requirement ($2.1M-$3.5M) paired with modest average net income ($502K) yields 4-7 year ROI with compressed margins after 6% royalties
  4. 04HIGHLitigation history includes fraud allegations and misrepresentation claims, raising concerns about franchisor transparency and agent practices
  5. 05MINORNo Item 19 financial performance representation limits ability to validate claimed $2M average revenue across franchisee population
  6. 06HIGHGoing Concern status of 'False' is ambiguous; clarification needed on franchisor financial stability

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.