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B59/100FDD 2025

Overtime Athletics — Litigation & Risk

Education - Children's Programs · FDD Items 3, 4 & 5

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
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
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$66K
Avg loan size
$33K
Participating lenders
1

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

What drove the 59/100 rating

Risk Score Breakdown

  1. 01MINORRegulatory violation in Virginia (March 2023): unregistered franchise sales and disclosure failures resulting in Consent Order and $17,400 in penalties
  2. 02MEDNo average revenue or net income disclosed in FDD Item 19, preventing realistic ROI assessment on $46,400–$58,500 investment
  3. 03MINORZero territory protection creates direct competition risk from other franchisees and company-owned locations
  4. 04MINOR2% royalty only triggers above $250,000 annual revenue threshold, suggesting many units may operate below profitability or disclosure visibility
  5. 05MINORRapid 19.5% YoY unit growth (49 total) may indicate recruitment-driven model rather than sustainable unit economics
  6. 06MINORLow franchise fee ($35,000) relative to initial investment range suggests thin margins and potential undercapitalization

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.