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B65/100FDD 2025

Onward Physical Therapy — Litigation & Risk

Health & Wellness - Other · FDD Items 3, 4 & 5

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Moderate — Review

3 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
3
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
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
1 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
North Carolina
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01HIGHActive pending litigation in Washington state regarding unregistered franchise sales creates legal uncertainty and potential forced rescission liability
  2. 02HIGHGoing concern status is FALSE, indicating serious financial distress or operational viability questions at corporate level
  3. 03MINORNo Item 19 (average revenue/net income) disclosure prevents validation of ROI claims and suggests weak unit economics or poor performance data
  4. 04MINOROnly 31 units with unknown growth trajectory suggests stagnant or declining system; lack of transparency on unit growth is concerning
  5. 05MINORMulti-state regulatory action pattern (Illinois, Maryland, Washington) indicates compliance failures and potential future enforcement actions
  6. 06MINORZero franchise fee model may indicate inability to generate upfront capital or desperation to recruit franchisees despite legal issues

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.