B60/100FDD 2025

Freckled Frog Dance Studio — 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

Total from FDD Items 3 and 4

Bankruptcy (Item 4)

—

Franchisor or officer bankruptcy

Overall risk score

60 / 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

California

State whose law governs disputes — relevant if you're not based there

What drove the 60/100 rating

Risk Score Breakdown

01MINOROnly 3 units in system with unknown growth trajectory suggests stagnant or declining franchise
02MEDNo average net income disclosed despite $331K average revenue — opacity on actual profitability
03HIGHGoing Concern status is FALSE, indicating potential financial instability at corporate level
04MINORHigh initial investment ($49.5K-$115.4K) relative to tiny unit count raises sustainability questions
05MINOR$36K franchise fee on 3-unit system may indicate struggling franchisor dependent on franchise sales revenue
06HIGHNo litigation disclosed but small unit count makes this less meaningful; limited sample size for dispute history

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.