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B55/100FDD 2026

ServiceRX — Litigation & Risk

Health & Fitness · FDD Items 3, 4 & 5

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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
55 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

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. 01MINOROnly 3 units in system with unknown growth trajectory indicates minimal scale and unproven model expansion
  2. 02MEDNet income not disclosed in Item 19 prevents ROI validation; only gross revenue ($506k avg) provided without profitability context
  3. 03HIGHGoing Concern = False is highly unusual terminology and may indicate financial instability or accounting issues at franchisor level
  4. 04MINORDual royalty structure (6% OR $125/week minimum) means franchisees pay $6,500 minimum annually regardless of performance
  5. 05MEDExtremely limited franchisee base (3 units) makes due diligence validation difficult and suggests weak demand or recent launches

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.