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A45/100FDD 2025

JETSET Pilates — 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
45 / 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
26
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$16.5M
Avg loan size
$635K
Participating lenders
13

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

What drove the 45/100 rating

Risk Score Breakdown

  1. 01MINORExplosive unit growth (300% YoY) is unsustainable and suggests either aggressive recruitment or potential instability — only 16 units total means growth from ~5 units, raising survivorship concerns
  2. 02MEDNo Item 19 financial performance representation disclosed — average revenue and net income figures cannot be independently verified and may not represent typical franchisee experience
  3. 03MINORHigh initial investment ($413k–$806k) against modest average net income ($283k) yields only 35–68% annual ROI before accounting for owner labor, taxes, and reinvestment
  4. 04MINORFranchise fee ($60k) is standard but combined with royalty floor ($1,000/month minimum = $12k annually) creates fixed cost burden regardless of performance
  5. 05HIGHGoing Concern = False is positive, but extreme YoY growth often masks unit quality issues, churn, or unsustainable recruitment-driven expansion

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.