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B62/100FDD 2026

Ervexia Occupational Health — Litigation & Risk

Health & Wellness - Other · 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
62 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
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
Arizona
State whose law governs disputes — relevant if you're not based there

What drove the 62/100 rating

Risk Score Breakdown

  1. 01MINORSystem collapsed 50% YoY (3 units remaining) indicating severe franchisee failure or franchisor distress
  2. 02HIGHGoing Concern = False suggests parent company financial instability or inability to support franchise system
  3. 03MEDNet Income not disclosed despite $892K avg revenue — likely unprofitable or hiding poor unit economics
  4. 04MINORHigh initial investment ($56-213K) + 8% royalty with only 3 units creates survivorship bias and unproven scalability
  5. 05HIGHNo litigation disclosed but system contraction suggests potential unresolved franchisee disputes or product/liability issues

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.