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F80/100FDD 2025

I Love Kickboxing — Litigation & Risk

Health & Fitness · FDD Items 3, 4 & 5

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Moderate — Review

5 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
5
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
80 / 100
FranchiseVerdict composite
Rating
AVOID
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
1.5 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
South Carolina
State whose law governs disputes — relevant if you're not based there

What drove the 80/100 rating

Risk Score Breakdown

  1. 01MEDSevere unit decline of 44.2% year-over-year (31 units remaining) indicates systemic problems and loss of franchisee confidence
  2. 02HIGHGoing concern status is FALSE, suggesting the franchisor itself may be financially unstable or unable to continue operations
  3. 03HIGHMultiple litigations including Franchise Sales Act violations, fraud/misrepresentation claims, and state cease-and-desist order from Washington demonstrate regulatory and legal credibility issues
  4. 04MINORZero financial transparency: no average unit volume, net income, or Item 19 disclosure prevents meaningful ROI analysis
  5. 05MINORHigh royalty floor of $750/month minimum creates fixed cost burden regardless of sales performance, risky in declining system
  6. 06HIGHCumulative litigation against predecessors AND current entity suggests pattern of compliance failures rather than isolated incidents

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.