FranchiseVerdict
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B64/100FDD 2024

Live Hydration Spa — Litigation & Risk

Other · 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
64 / 100
FranchiseVerdict composite
Rating
MODERATE
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
13
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
$2.2M
Avg loan size
$172K
Participating lenders
6

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

What drove the 64/100 rating

Risk Score Breakdown

  1. 01MINOROnly 2 existing units indicates extremely early-stage system with minimal track record and unproven scalability
  2. 02MEDNo average revenue or net income disclosed — inability to model ROI or validate $136k-$534k investment thesis
  3. 03MINOR50% royalty on net fees is extraordinarily high and creates misaligned incentives between franchisor and franchisee profitability
  4. 04MINORZero territory protection exposes franchisees to immediate cannibalization and multi-unit saturation risk
  5. 05MED$120,000 franchise fee represents 88% of minimum investment with no disclosed path to profitability
  6. 06MINOR10-year term locks franchisees into partnership with unproven franchisor during critical growth phase
  7. 07MEDNo disclosed Item 19 financial performance data prevents validation of unit economics
  8. 08MINORVague business model (hydration spa) lacks clarity on service differentiation, unit economics, or labor model

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.