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B64/100FDD 2025

PickUp USA Fitness — 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
64 / 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
25
Government-backed loans issued
Default rate
16.7%
vs <3% typical · system-wide
5-yr default rate
20.0%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$11.5M
Avg loan size
$461K
Participating lenders
12

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 64/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 financial disclosure (average unit volumes and profitability completely unknown)
  2. 02MINORExtremely slow unit growth of 7.1% YoY with only 16 total units indicates weak franchisee recruitment and system maturity issues
  3. 03MEDHigh investment range ($351K–$788K) combined with undisclosed revenue makes ROI impossible to validate
  4. 04HIGHGoing Concern status is FALSE, which is ambiguous and requires clarification on franchisor financial stability
  5. 05MINOR6% royalty on gross revenues (not net) means franchisees pay even during unprofitable months
  6. 06HIGHNo disclosed litigation but small unit count limits visibility into potential dispute patterns

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.