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B65/100FDD 2025

Portal Club — Litigation & Risk

Health & Wellness - Other · 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
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
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
Colorado
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 unit in system indicates no proven scalability or multi-unit validation; impossible to assess franchise model viability
  2. 02MINORExtreme investment range ($386K–$2.86M) suggests undefined cost structure and unclear what franchisees actually receive for $85K fee
  3. 03MINORNo Item 19 (Financial Performance Representations) provided — cannot verify if $860K average revenue and $521K net income are achievable or representative
  4. 04MINORRoyalty structure with $7.5K–$15K minimum floor means early-stage units pay 1.7%–4.3% on stated average revenue; unclear if sustainable pre-profitability
  5. 05MINORUnknown growth trajectory with single unit raises questions about franchisor's expansion capacity, training infrastructure, and real demand

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.