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B65/100FDD 2026

Hydrogen Fitness — 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
65 / 100
FranchiseVerdict composite
Rating
MODERATE
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
Connecticut
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MEDOnly 2 franchised units with unknown growth trajectory indicates extremely limited operating history and no proven scalability
  2. 02MINORNo Item 19 financial performance representation despite average revenues of $1.99M suggests franchisor is unwilling to substantiate earnings claims publicly
  3. 03MEDHigh investment range ($983K-$2.8M) against only 2 reference locations creates severe due diligence risk and limited comparables
  4. 04HIGHGoing Concern status is FALSE — potential financial instability at franchisor level raises sustainability concerns
  5. 05MINORRoyalty structure (greater of 4% or $1,000/month) provides minimal franchisor revenue from only 2 units, questioning business model viability

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.