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AStrongest tier98/100FDD 2026

Fleet Feet: Litigation & Risk

Health & Fitness · 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)
None
Franchisor or officer bankruptcy
Verdict score
98 / 100
FranchiseVerdict composite · higher is better
Rating
A
A / B / C / D / F verdict grade

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Charge-off rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
28
Government-backed loans issued
Charge-off rate
7.1%
vs 16% franchise average
5-yr charge-off rate
N/A
Defaults
2 loans
Loans charged off or defaulted
Total loan volume
$3.4M
Avg loan size
$123K
Participating lenders
20

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

Extracted from FDD Item 3

Litigation Detail

No litigation is required to be disclosed in Item 3.

What drove the 98/100 verdict

Risk Score Breakdown

  1. 01MEDNet income not disclosed in FDD Item 19 — cannot validate profitability or ROI against $352k-$651.5k investment
  2. 02MINORMinimal unit growth of 2.6% YoY suggests market saturation or franchisee satisfaction issues in 283-unit system
  3. 03MEDHigh investment range ($299.5k spread) with no disclosed average net income creates uncertainty on payback period
  4. 04MINORRoyalty burden of 4% on $1.67M avg revenue ($66.9k annually) plus operating costs may compress margins significantly
  5. 05MINOR20-year term is unusually long and locks franchisees into potential declining retail/running shoe market trends

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.