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A34/100FDD 2026

FYZICAL Therapy & Balance Centers — Litigation & Risk

Health & Wellness - Other · FDD Items 3, 4 & 5

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Moderate — Review

3 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
3
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
34 / 100
FranchiseVerdict composite
Rating
STRONG
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
103
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$22.6M
Avg loan size
$220K
Participating lenders
30

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

What drove the 34/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 (Average Unit Volume) disclosed despite $670K average revenue claim — inability to verify earnings claims or unit profitability
  2. 02HIGHThree active litigation cases including breach of contract/misrepresentation settlement ($50K) suggest franchisor-franchisee conflict and potential systemic issues
  3. 03MINORSlow unit growth (5.9% YoY) with 579 units indicates market saturation or franchisee dissatisfaction in mature system
  4. 04MINORHigh royalty floor ($3,000/month = $36K annually) creates significant fixed costs regardless of revenue, problematic for underperforming locations
  5. 05HIGHGoing Concern status signals potential financial distress at franchisor level, raising questions about support, technology, and long-term viability
  6. 06MINORConstructive discharge and retaliation claims suggest internal management/HR dysfunction that may extend to franchisee relations

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.