B65/100FDD 2025
Fancy Feet Dance Studio® — Litigation & Risk
Health & Fitness · 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
New York
State whose law governs disputes — relevant if you're not based there
What drove the 65/100 rating
Risk Score Breakdown
- 01MINOROnly 5 units in system with unknown growth trajectory suggests minimal scale and unproven business model replication
- 02MINORNo average revenue or net income disclosure (Item 19) prevents realistic ROI assessment on $98,900-$185,200 investment
- 03MED10% royalty on undisclosed revenue base creates uncertainty about actual take-home profitability
- 04MEDHigh initial investment ($30,000 franchise fee + $68,900-$155,200 buildout) with no disclosed break-even timeline
- 05MINORTiny franchisee base (5 units) limits peer support network and success pattern validation
- 06MINORDance studio market is highly local, competitive, and sensitive to economic downturns affecting discretionary spending
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.