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B59/100FDD 2022

Premier Martial Arts — Litigation & Risk

Health & Fitness · FDD Items 3, 4 & 5

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Moderate — Review

3 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
3
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

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
205
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

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
Texas
State whose law governs disputes — relevant if you're not based there

What drove the 59/100 rating

Risk Score Breakdown

  1. 01HIGHActive multi-state franchisee lawsuit alleging fraud and franchise practice violations by affiliate UATP Management suggests systemic operational or disclosure issues
  2. 02MINOR2021 California consent order for unregistered franchise sales indicates prior regulatory non-compliance by predecessor; unclear if issues were fully remediated
  3. 03MINORUnprotected territory creates direct competition risk; with 175 units and no territorial exclusivity, same-brand cannibalization could compress individual unit economics
  4. 04MINORNet income of $75,950 on $315,850 revenue (24% margin) must support $49,500 franchise fee + 7% royalties + operating costs; tight ROI timeline
  5. 05HIGH76.6% YoY unit growth masks potential quality control concerns given litigation—rapid growth + lawsuits suggest recruitment may outpace support

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.