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B65/100FDD 2024

Moms On The Run — 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
65 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

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
1.5 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
Minnesota
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MINORUnit count collapsed 30.6% YoY (49 units remaining) — indicates serious system-wide distress or poor unit economics
  2. 02MINORNo average revenue or net income disclosure — inability or unwillingness to provide Item 19 financial performance data is a major transparency red flag
  3. 03MINORRoyalty structure incentivizes growth but declining units suggest franchisees cannot profitably reach 60+ customer threshold
  4. 04MINORLow initial investment ($13.9K-$21.1K) may indicate low barrier to entry AND low barrier to exit/failure
  5. 05MINOR5-year term is shorter than industry standard (typically 10 years) — suggests franchisor or franchisees lack long-term confidence
  6. 06HIGHGoing Concern status is positive but combined with 30% unit decline, indicates financial instability at corporate level

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.