A38/100FDD 2025
Fitness Machine Technicians FMT — Litigation & Risk
Health & Fitness · FDD Items 3, 4 & 5
Moderate — Review
5 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
5
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
38 / 100
FranchiseVerdict composite
Rating
STRONG
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
North Carolina
State whose law governs disputes — relevant if you're not based there
What drove the 38/100 rating
Risk Score Breakdown
- 01MINORPredecessor company (TMA/Mosquito Authority) has four unregistered franchise sales regulatory violations across multiple states, indicating potential compliance and disclosure issues that may persist
- 02MEDNo Item 19 (Financial Performance Representations) disclosed — cannot independently verify the claimed $212,397.50 average net income or $466,910 average revenue figures
- 03MEDModest unit growth of only 9.1% YoY with 140 total units suggests limited brand momentum; saturation risk in service territory model
- 04MINORTiered royalty structure (6% then 5%) creates ambiguity on true take-home net income once corporate overhead is factored across declining margin tiers
- 05HIGHAffiliate litigation (Soccer Shots no-poaching settlement) indicates corporate culture issues with restrictive covenants that may impact franchisee autonomy
- 06MINORService-based franchise model highly dependent on owner involvement, labor costs, and local market saturation with minimal recurring revenue protection
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.