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B59/100FDD 2025

PingPod — 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
59 / 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
New Jersey
State whose law governs disputes — relevant if you're not based there

What drove the 59/100 rating

Risk Score Breakdown

  1. 01MEDNo average net income disclosed despite $263k average revenue — inability or unwillingness to report profitability is a major red flag
  2. 02MEDOnly 18 units with unknown growth trajectory — extremely small franchise system limits support infrastructure and suggests limited market validation
  3. 03HIGHGoing Concern status is False — indicates potential financial instability at franchisor level
  4. 04MINORDual royalty structure (6% + per-lesson fee of $7.50-$10) creates unpredictable cost burden and reduces transparency of true franchise costs
  5. 05MINOR10-year term with $49,500 franchise fee and $161.5k-$473k investment requires significant capital commitment for unproven concept with minimal franchisee success 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.