FranchiseVerdict
Shredder Indoor Ski and Snowboard School logo
B55/100FDD 2025

Shredder Indoor Ski and Snowboard School — Litigation & Risk

Education - Tutoring & Test Prep · FDD Items 3, 4 & 5

Back to overview

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

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
4
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
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 55/100 rating

Risk Score Breakdown

  1. 01MEDNet income not disclosed in FDD Item 19 — impossible to verify profitability claims against $259,569 average revenue
  2. 02MINORExplosive 300% YoY unit growth (from ~2 to 8 units) suggests either brand new system or recent rapid expansion with unproven sustainability
  3. 03MEDHigh investment range ($219k-$395k) relative to disclosed average revenue ($259,569) creates tight ROI timeline and breakeven risk
  4. 04MINOR6% royalty on gross sales (not net) means franchisees pay royalties even during loss periods
  5. 05MEDUltra-niche market (indoor ski/snowboard) with limited addressable market and high seasonal/weather dependency for customer acquisition

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.