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D72/100FDD 2025

Flurry Fitness — Litigation & Risk

Other · 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)
—
Franchisor or officer bankruptcy
Overall risk score
72 / 100
FranchiseVerdict composite
Rating
CAUTION
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
Arizona
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MEDOnly 2 units in entire system with no disclosed average revenue or net income — impossible to validate unit economics or ROI
  2. 02HIGHGoing Concern status is FALSE, indicating potential financial distress at corporate level
  3. 03MINORNo Item 19 financial performance representations — cannot verify if $231K-$476K investment generates positive returns
  4. 04MINOR100% YoY growth (1→2 units) is misleading; system is virtually non-existent with zero franchisee validation available
  5. 05MINORHigh initial investment ($231K minimum) relative to system size creates liquidity risk if franchise fails
  6. 06MED6% royalty on undisclosed revenue means ongoing costs cannot be evaluated against actual earnings
  7. 07MINORBrand obscurity and minimal market presence suggest weak operational infrastructure and support systems

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.