A49/100FDD 2026
N Zone Sports — Litigation & Risk
Education - Children's Programs · 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
49 / 100
FranchiseVerdict composite
Rating
STRONG
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
3
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$225K
Avg loan size
$75K
Participating lenders
2
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
Florida
State whose law governs disputes — relevant if you're not based there
What drove the 49/100 rating
Risk Score Breakdown
- 01MEDNo average revenue or net income disclosed — inability to assess profitability or ROI on $54k-$97k investment
- 02MINORNo Item 19 financial performance representations — franchisees cannot validate earnings claims or payback period
- 03MINORMinimum royalty floor of $300-$450/month ($3,600-$5,400 annually) creates fixed cost burden regardless of sales performance
- 04MINOR27.9% YoY unit growth is positive but unverified — no disclosure of unit closures, transfers, or churn rate
- 05MINORZero franchise fee is unusual and may indicate weak franchisor support model or cash flow constraints
- 06HIGHGoing Concern = False status is unclear — requires clarification on franchisor financial stability
- 07MINORSports entertainment is saturated market with high operational overhead (staff, facility maintenance, 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.