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B65/100FDD 2026

PowerLift — Litigation & Risk

Other · 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
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
South Dakota
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MEDExtremely high capital requirement ($2.3M–$3.3M) with no royalty transparency and undisclosed average revenue/net income creates inability to validate ROI
  2. 02MINOROnly 47 units with unknown growth trajectory suggests stagnant or declining system; no unit growth data provided is itself a red flag
  3. 03HIGHRecent litigation (Inland Metalworks case, dismissed December 2024) involving Franchise Investment Protection Act violations indicates compliance or contractual disputes within franchisee relationships
  4. 04HIGHGoing Concern = False indicates potential financial instability at corporate level, raising questions about franchisor's ability to support franchisees long-term
  5. 05MEDNo Item 19 (average unit volumes/profitability) disclosed despite massive capital requirement makes due diligence nearly impossible

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.