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B59/100FDD 2026
MD Hyperbaric Center — Litigation & Risk
Health & Wellness - Other · 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
59 / 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
2
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
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
New Jersey
State whose law governs disputes — relevant if you're not based there
What drove the 59/100 rating
Risk Score Breakdown
- 01MINORExplosive unit growth (300% YoY) suggests either aggressive recruitment or unsustainable expansion — difficult to validate quality of new franchisees
- 02HIGHNo Item 19 (Going Concern = False) means franchisor declined to disclose financial performance data, preventing independent verification of claimed average revenue/net income
- 03MINORHigh investment range ($133K-$521K) with only 12 units total creates concentration risk and limits comparative performance data
- 04MINOR8% royalty on $359K average revenue = $28,760/year in fees, compressing margins significantly given capital intensity of hyperbaric equipment
- 05HIGHMedical/clinical franchise with no disclosed litigation is unusual — hyperbaric therapy carries regulatory, insurance, and liability exposure that should be scrutinized
- 06MEDFranchise fee ($50K) represents 37% of minimum investment, indicating front-loaded costs with limited franchisor skin-in-the-game
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.