D69/100FDD 2023
Gold Medal Swim School — Litigation & Risk
Education - Tutoring & Test Prep · FDD Items 3, 4 & 5
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
69 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID
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
1 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
Arizona
State whose law governs disputes — relevant if you're not based there
What drove the 69/100 rating
Risk Score Breakdown
- 01MINOROnly 1 operating unit despite 15-year franchise history suggests severe system stagnation or recent collapse
- 02MEDNo disclosed average revenue or net income (Item 19) prevents ROI validation and indicates potential franchisor reluctance to share performance data
- 03MINORHigh initial investment range ($552.5K–$1.146M) with no published earnings benchmarks creates uncertainty about payback period and profitability thresholds
- 04MINOR6% royalty on gross revenue (not net) is punitive during low-revenue periods and suggests franchisor prioritizes fees over franchisee success
- 05MINORSingle unit makes territory protection claim unverifiable and raises questions about market viability or franchisee support quality
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.