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B56/100FDD 2025
National Academy of Athletics — Litigation & Risk
Health & Fitness · 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
56 / 100
FranchiseVerdict composite
Rating
MODERATE
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
California
State whose law governs disputes — relevant if you're not based there
What drove the 56/100 rating
Risk Score Breakdown
- 01MEDNo average revenue or net income disclosed — impossible to assess ROI on $44.8K-$65.2K investment
- 02MEDOnly 15 units system-wide with unknown growth trajectory suggests minimal scale and limited brand recognition
- 03MINORTiered royalty structure with $500-$1,000/month minimum may be unsustainable for sub-$750K revenue locations
- 04MINORHigh franchise fee ($34,750) relative to total investment cap suggests front-loaded costs with unclear profit potential
- 05MED10-year term lock-in without disclosed break-even timeline creates exit risk
- 06MINORProtected territory alone insufficient to offset lack of performance benchmarking data
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.