FranchiseVerdict
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B57/100FDD 2025

Fred Astaire Dance Studios — Litigation & Risk

Health & Fitness · FDD Items 3, 4 & 5

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Moderate — Review

2 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
57 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

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

Total 7(a) loans
33
Government-backed loans issued
Default rate
16.7%
vs <3% typical · system-wide
5-yr default rate
100.0%
Defaults
2 loans
Loans charged off or defaulted
Total loan volume
$12.3M
Avg loan size
$372K
Participating lenders
18

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

What drove the 57/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 (Average Unit Volume) disclosure — unable to validate $777K average revenue claim or compare to your investment payback period
  2. 02MINORModest unit growth of 6.1% YoY suggests market saturation or franchisee churn in a mature 261-unit system
  3. 03MINORHistorical FTC consent order (1964/1989) for sales practices and 2016 Virginia settlement indicate regulatory compliance issues with franchise sales tactics
  4. 04MINORHigh investment range ($296K–$658K) creates wide performance variance; without net income data, ROI timeline is opaque
  5. 05MINOR7% royalty on gross revenue (not net) penalizes high-volume, low-margin operators

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.