FranchiseVerdict
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D72/100FDD 2025

Free Spirit Yoga Ninja Play — 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
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
Oregon
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 operating unit with unknown growth trajectory indicates unproven franchise model scalability
  2. 02HIGHGoing Concern = False suggests potential financial instability or operational challenges at franchisor level
  3. 03MINORHigh investment-to-net-income ratio: $443k-$596k investment against $108k avg net income = 4-5.5 year payback with no growth visibility
  4. 04MINORItem 19 (Financial Performance Representations) appears absent — franchisor not disclosing actual franchisee earnings data
  5. 05MINORSingle unit dataset is statistically invalid; cannot validate revenue/income sustainability across multiple locations
  6. 06MINOR7% royalty on $508k revenue = ~$35,600 annual fee significantly impacts the $108k net income margin
  7. 07HIGHNo disclosed litigation but going concern flag suggests undisclosed legal/operational risks may exist
  8. 08MEDNiche concept (yoga + ninja + play) has limited addressable market and unproven demand sustainability

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.