A39/100FDD 2024
Soccer Stars — Litigation & Risk
Health & Fitness · 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
39 / 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
13
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$2.5M
Avg loan size
$190K
Participating lenders
5
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
New York
State whose law governs disputes — relevant if you're not based there
What drove the 39/100 rating
Risk Score Breakdown
- 01MINORExtreme unit growth of 2733% YoY is mathematically unsustainable and suggests either acquisition of existing chains, aggressive expansion with unproven model sustainability, or inflated unit counts
- 02MINORAverage net income of $535,654 on $1.69M revenue (31.6% net margin) appears unrealistic for a youth sports franchise and warrants verification of accounting methodology
- 03MINORHigh franchise fee of $49,500 plus $73,300–$106,300 total investment with 8% royalties creates significant break-even hurdle for unit economics
- 04MINORMinimum royalty floor ($700–$800/month) suggests franchisor concerns about franchisee revenue sustainability and potential cash flow stress
- 05MINOROnly 95 total units across entire system despite extraordinary growth claims indicates either very recent launch or data integrity issues
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.