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AStrongest tier71/100FDD 2025

Fitness Machine Technicians FMT: Litigation & Risk

Health & Fitness · FDD Items 3, 4 & 5

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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)
None
Franchisor or officer bankruptcy
Verdict score
71 / 100
FranchiseVerdict composite · higher is better
Rating
A
A / B / C / D / F verdict grade

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
NC
State whose law governs disputes. Relevant if you're not based there

Extracted from FDD Item 3

Litigation Detail

5 predecessor/affiliate matters: 4 regulatory consent orders against TMA Franchise Systems (predecessor to Mosquito Authority) for franchise registration violations in Maryland (2013), Rhode Island (2013), Virginia (2015), and Minnesota (2017); plus 1 Soccer Shots affiliate assurance of discontinuance re no-poaching provisions (2019). No pending litigation for current franchisor.

What drove the 71/100 verdict

Risk Score Breakdown

  1. 01MINORPredecessor company (TMA/Mosquito Authority) has four unregistered franchise sales regulatory violations across multiple states, indicating potential compliance and disclosure issues that may persist
  2. 02MEDNo Item 19 (Financial Performance Representations) disclosed — cannot independently verify the claimed $212,397.50 average net income or $466,910 average revenue figures
  3. 03MEDModest unit growth of only 9.1% YoY with 140 total units suggests limited brand momentum; saturation risk in service territory model
  4. 04MINORTiered royalty structure (6% then 5%) creates ambiguity on true take-home net income once corporate overhead is factored across declining margin tiers
  5. 05HIGHAffiliate litigation (Soccer Shots no-poaching settlement) indicates corporate culture issues with restrictive covenants that may impact franchisee autonomy
  6. 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.