A49/100FDD 2026
Pure Sweat Studios — Litigation & Risk
Health & Wellness - Other · FDD Items 3, 4 & 5
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
49 / 100
FranchiseVerdict composite
Rating
STRONG
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
Tennessee
State whose law governs disputes — relevant if you're not based there
What drove the 49/100 rating
Risk Score Breakdown
- 01MEDNet income not disclosed in FDD Item 19 — unable to validate profitability claims against $509k avg revenue
- 02MINORHigh initial investment ($573k–$889k) with only 22.2% YoY unit growth suggests slow scaling and unproven unit economics
- 03MINORRoyalty structure (6% of gross) provides no margin cushion if revenue underperforms — franchisee bears full downside
- 04MEDOnly 11 units system-wide indicates early-stage franchise with limited operational maturity and case study data
- 05MEDRevenue figure ($509k avg) lacks context: unclear if this is median, mean, or if it includes failed/closed locations
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.