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D75/100FDD 2025

Hot Ground Gym — 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
75 / 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
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
No
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Delaware
State whose law governs disputes — relevant if you're not based there

What drove the 75/100 rating

Risk Score Breakdown

  1. 01MEDOnly 3 operating units indicates extremely limited system maturity and unproven scalability model
  2. 02HIGHGoing Concern status is FALSE—suggests franchisor financial instability or legal/operational issues
  3. 03MEDNo Item 19 (Average Unit Volume) disclosed—cannot assess profitability or ROI on $163k-$317k investment
  4. 04MINORNo average net income data provided—impossible to validate payback period or break-even timeline
  5. 05MINORWide investment range ($154k spread) without corresponding revenue/profit disclosure raises transparency concerns
  6. 06MED6% royalty on undisclosed revenue stream creates unpredictable cost structure for franchisee planning
  7. 07MED7-year term locks franchisee into underperforming or unstable system with limited exit options
  8. 08MINORMinimal franchise footprint (3 units) suggests either recent launch without traction or significant unit attrition

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.