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B63/100FDD 2025

Elev8 Performance — Litigation & Risk

Health & Fitness · FDD Items 3, 4 & 5

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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
63 / 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
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
California
State whose law governs disputes — relevant if you're not based there

What drove the 63/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 franchised unit despite system claims suggests minimal franchise growth or early-stage system with unproven model
  2. 02HIGHNo 'Going Concern' statement filed indicates potential financial instability or lack of formal FDD Item 21 disclosures
  3. 03MEDHigh investment range ($211k-$555k) with limited multi-unit validation data creates profitability uncertainty
  4. 04MINORRoyalty rate of 6% is reasonable but with only 1 unit operating, there's no proof of concept at scale
  5. 05MINORSignificant gap between average net income ($216,954) and investment range suggests 0.4-1.0x ROI in year one is optimistic

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.