FranchiseVerdict
Pilates Addiction logo
D73/100FDD 2025

Pilates Addiction — Litigation & Risk

Health & Fitness · FDD Items 3, 4 & 5

Back to overview

Elevated Risk

7 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
7
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
73 / 100
FranchiseVerdict composite
Rating
CAUTION
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
Delaware
State whose law governs disputes — relevant if you're not based there

What drove the 73/100 rating

Risk Score Breakdown

  1. 01HIGHPending litigation involving both founder/officers (Sarah Luna and Anthony Geisler) alleging fraud, disclosure violations, and franchisee disputes from their previous Xponential Fitness roles creates credibility and legal risk
  2. 02HIGHGoing Concern status is FALSE — indicates financial instability and potential solvency questions at corporate level
  3. 03MEDNet Income not disclosed despite $451,547 average revenue — inability or unwillingness to provide profitability data is a major transparency red flag
  4. 04MEDOnly 11 units with unknown growth trajectory — extremely small system suggests limited brand traction and high failure risk
  5. 05MEDHigh investment range ($303K-$699K) paired with undisclosed profitability creates asymmetric risk for franchisees
  6. 06MED8% royalty on gross sales (not net) combined with non-disclosed net income means franchisees cannot model true ROI
  7. 07HIGHLitigation involving disclosure violations and fraud allegations directly undermines Item 23 (litigation disclosures) credibility

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.