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B55/100FDD 2025

Fly Dance Fitness — 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)
—
Franchisor or officer bankruptcy
Overall risk score
55 / 100
FranchiseVerdict composite
Rating
MODERATE
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
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 55/100 rating

Risk Score Breakdown

  1. 01MEDOnly 1 disclosed unit makes validation impossible — no system track record or comparable performance data
  2. 02MINORNo Item 19 financial performance representation — claimed $244,587 avg revenue and $105,315 net income are unverified and potentially cherry-picked
  3. 03MINORHigh investment-to-net-income ratio (1.68x–3.47x payback period) with unproven scalability across multiple locations
  4. 04MEDRoyalty structure (6% + operating costs) leaves limited margin for error in a discretionary fitness market with high churn
  5. 05MINORUnknown growth trajectory — single unit provides no evidence of system expansion, franchisee recruitment success, or retention
  6. 06MINORFitness franchise category has historically high failure rates; dance/boutique fitness segment saw consolidation 2020–2023

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.