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A35/100FDD 2025

i9 Sports — Litigation & Risk

Education - Children's Programs · FDD Items 3, 4 & 5

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Moderate — Review

3 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
3
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
35 / 100
FranchiseVerdict composite
Rating
STRONG
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
19
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$3.9M
Avg loan size
$204K
Participating lenders
12

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

What drove the 35/100 rating

Risk Score Breakdown

  1. 01HIGHLitigation involving parent company affiliates (Arby's, Dunkin') raises questions about corporate governance and legal exposure that could affect franchise operations
  2. 02MINORSlow unit growth of 7.8% YoY in a youth sports market suggests market saturation or operational challenges despite positive unit economics
  3. 03MINORHigh royalty floor ($425-$450/month minimum) creates fixed cost burden; franchisees earning below $5,400-$5,400 annually in network revenue operate at a loss
  4. 04MINORNo Item 19 (financial performance representations) limits ability to validate the $461K average revenue and $122K net income claims independently
  5. 05MINORMinimum royalty structure incentivizes aggressive revenue extraction even from struggling locations, potentially masking system-wide underperformance

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.