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D77/100FDD 2024

Mayweather Boxing + Fitness — Litigation & Risk

Health & Fitness · FDD Items 3, 4 & 5

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
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
31
Government-backed loans issued
Default rate
25.0%
vs <3% typical · system-wide
5-yr default rate
33.3%
Defaults
3 loans
Loans charged off or defaulted
Total loan volume
$12.6M
Avg loan size
$407K
Participating lenders
15

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

What drove the 77/100 rating

Risk Score Breakdown

  1. 01MINORDeclining unit count (-2.9% YoY) suggests system contraction and potential franchisee dissatisfaction
  2. 02MEDRecent Maryland Securities Commissioner consent order (March 2023) for unregistered franchise sales in 2019-2021 indicates regulatory compliance failures and legal exposure
  3. 03MEDNo Item 19 financial performance disclosure (Avg Revenue and Avg Net Income not disclosed) prevents accurate ROI assessment and raises transparency concerns
  4. 04MEDHigh initial investment range ($347K-$660K) combined with 7% royalty burden and undisclosed profitability creates significant financial risk
  5. 05MINORFitness/boxing franchise category faces intense local competition and high operational complexity (staffing, equipment, liability insurance)

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.