D77/100FDD 2024
ISI Elite Training — Litigation & Risk
Health & Fitness · FDD Items 3, 4 & 5
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
77 / 100
FranchiseVerdict composite
Rating
CAUTION
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
41
Government-backed loans issued
Default rate
28.6%
vs <3% typical · system-wide
5-yr default rate
28.6%
Defaults
2 loans
Loans charged off or defaulted
Total loan volume
$12.1M
Avg loan size
$295K
Participating lenders
11
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
North Carolina
State whose law governs disputes — relevant if you're not based there
What drove the 77/100 rating
Risk Score Breakdown
- 01MEDNo Item 19 (Average Unit Volume) disclosed — cannot validate $443,832 average revenue claim or profitability
- 02MEDNet income not disclosed — unable to assess actual franchisee profit margins after 7% royalty + operating costs
- 03HIGHGoing Concern status is FALSE — suggests potential financial instability at franchisor level
- 04MINORHigh unit growth (81.8% YoY) may indicate aggressive recruitment over sustainable support — quality vs. quantity concern
- 05MINORInvestment range of $285,300 spread ($396.6K–$681.9K) suggests high variability in startup costs and undefined ROI clarity
- 06MINOR10-year term is extended lock-in with 7% royalty on gross (not net) — high ongoing cost structure
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.