B57/100FDD 2025
Farrell’s Extreme Bodyshaping — 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
57 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.
Total 7(a) loans
33
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
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 Jersey
State whose law governs disputes — relevant if you're not based there
What drove the 57/100 rating
Risk Score Breakdown
- 01MINORDeclining unit count (-4.3% YoY) indicates system contraction and potential market saturation or operational challenges
- 02MINORNo average revenue or net income disclosure (Item 19) prevents realistic ROI assessment and suggests franchisor may be withholding unfavorable performance data
- 03MEDHigh initial investment range ($151k-$349k) combined with undisclosed profitability creates significant financial risk with unclear return potential
- 04MINORMandatory monthly minimums ($600-$1,100) create fixed costs even during low-revenue periods, reducing franchisee flexibility
- 05MINORFitness/bodyshaping market is highly competitive with low barriers to entry; many direct competitors operate without franchise model
- 06MINOR44-unit system is relatively small, limiting brand recognition, marketing leverage, and support infrastructure
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.