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D74/100FDD 2023

Manduu — 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
74 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

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

What drove the 74/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern warning indicates franchisor financial distress or viability questions
  2. 02MEDUnit count declined 10% YoY (15 units total) suggesting system contraction and weak franchisee performance
  3. 03MEDNo Item 19 (average revenue/income) disclosed—inability or unwillingness to substantiate earnings claims
  4. 04MEDHigh initial investment ($262.7K–$724K) with no disclosed average revenue creates ROI opacity
  5. 05MINORDual royalty structure (8%+ of sales OR $1,000/machine/month) ambiguous—unclear which applies and how it impacts profitability
  6. 06MINORFranchise fee ($75K) is substantial relative to 15-unit system size, suggesting franchisor may be unit-focused rather than franchisee-success-focused
  7. 07HIGHNo litigation disclosed but Going Concern status suggests potential regulatory or operational issues not yet litigated

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.