![Cloud 9 Foot Spa logo](https://cdn.brandfetch.io/cloud9.spa/w/128/h/128/fallback/lettermark?c=<img src="https://cdn.brandfetch.io/domain/apple.com?c=1idsvcTjLv919Ax0E2s" alt="Logo by Brandfetch" />){kind=small}
B65/100FDD 2025
Cloud 9 Foot Spa — Litigation & Risk
Health & Wellness - Other · FDD Items 3, 4 & 5
Lower Risk
No litigation cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
65 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID
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 65/100 rating
Risk Score Breakdown
- 01HIGHGoing Concern status is False — indicates potential financial instability or operational challenges at corporate level
- 02MINOROnly 8 units system-wide with unknown growth trajectory — suggests stagnant or declining franchise model
- 03MINORNo average revenue or net income disclosure (no Item 19) — impossible to validate ROI claims or unit economics
- 04MEDHigh investment range ($262K–$525K) with 5% royalty against undisclosed revenue makes payback period unknowable
- 05MINORSmall unit count limits peer validation and suggests weak market traction or recent setbacks
- 06MINOR10-year term locks franchisee into relationship with unstable franchisor
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.