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F92/100FDD 2025

Gymguyz — 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
92 / 100
FranchiseVerdict composite
Rating
AVOID
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
35
Government-backed loans issued
Default rate
55.6%
vs <3% typical · system-wide
5-yr default rate
50.0%
Defaults
10 loans
Loans charged off or defaulted
Total loan volume
$4.5M
Avg loan size
$130K
Participating lenders
10

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

What drove the 92/100 rating

Risk Score Breakdown

  1. 01MINORUnit count declining 2.5% YoY suggests system contraction and potential market saturation or franchisee dissatisfaction
  2. 02MINORNet income ($160,712) appears unusually high relative to gross revenue ($106,506) — mathematically impossible and indicates data quality issues or accounting irregularities
  3. 03MINORRoyalty structure has dual-trigger minimum ($300-$400 bi-weekly floor) which may create cash flow pressure on lower-performing locations
  4. 04MEDNo Item 19 Financial Performance Representation disclosed limits transparency on typical franchisee earnings
  5. 05MINORPersonal training/fitness services are labor-intensive with high customer acquisition costs and seasonal demand volatility

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.