FranchiseVerdict
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A41/100FDD 2025

Prime IV Hydration & Wellness — Litigation & Risk

Health & Wellness - Other · FDD Items 3, 4 & 5

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Moderate — Review

2 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
41 / 100
FranchiseVerdict composite
Rating
STRONG
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
56
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$15.7M
Avg loan size
$281K
Participating lenders
18

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
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 41/100 rating

Risk Score Breakdown

  1. 01HIGHActive litigation in multiple states regarding franchise fee deferral and registration violations—indicates compliance issues at corporate level
  2. 02MEDNet income not disclosed in FDD Item 19—unable to validate actual profitability claims; average revenue of $567K may mask wide variance and underperforming units
  3. 03HIGHGoing concern status suggests potential financial instability at franchisor level, raising questions about support, marketing fund viability, and long-term system survival
  4. 04MINORHigh unit growth rate (55.1% YoY) may be unsustainable and typical of aggressive expansion preceding market saturation or system contraction
  5. 05MINORWide investment range ($187K-$631K) indicates inconsistent build-out costs and unclear path to profitability for lower-investment models

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.