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B55/100FDD 2025

RockBox Fitness — Litigation & Risk

Health & Fitness · 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
55 / 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
25
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
$7.5M
Avg loan size
$300K
Participating lenders
15

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

What drove the 55/100 rating

Risk Score Breakdown

  1. 01MEDUnit count declined 13.3% YoY (52 units) indicating system contraction and potential market saturation or performance issues
  2. 02MEDNo Item 19 financial performance disclosure (Avg Revenue and Net Income not disclosed) prevents accurate ROI assessment and suggests weak unit economics
  3. 03HIGHActive litigation involving franchisor over lease dispute and indemnity claims raises concerns about franchisor support and legal exposure for franchisees
  4. 04MEDHigh minimum royalty of $1,500/month ($18,000/year) creates break-even pressure on struggling locations, especially relevant given unit decline
  5. 05HIGHGoing Concern flag suggests potential financial instability at franchisor level, raising solvency and support continuity risks
  6. 06MINORFitness franchise sector highly competitive with low barriers to entry; declining units suggest RockBox losing market share or struggling with retention

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.