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D72/100FDD 2025

EMS To You — 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
72 / 100
FranchiseVerdict composite
Rating
CAUTION
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
Colorado
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 existing franchisee unit—no proven system scalability or validation
  2. 02MEDNo average revenue or net income disclosed—inability to assess ROI or profitability claims
  3. 03HIGHGoing Concern status is False—suggests potential financial instability at franchisor level
  4. 04MEDHigh initial investment ($51,740–$78,910) relative to minimal disclosed financial performance
  5. 05MINORMinimum royalty of $295/month ($3,540/year) creates fixed cost burden regardless of revenue generation
  6. 06MINOR7-year term is longer than industry standard—locks franchisee into unproven concept
  7. 07HIGHNo litigation disclosure combined with single unit suggests either brand opacity or inability to attract/retain franchisees
  8. 08MINORLack of Item 19 (financial performance representations) prevents due diligence on earnings potential

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.