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
87 / 100
FranchiseVerdict composite
Rating
AVOID
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
11
Government-backed loans issued
Default rate
44.4%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
4 loans
Loans charged off or defaulted
Total loan volume
$1.7M
Avg loan size
$151K
Participating lenders
8
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
Maryland
State whose law governs disputes — relevant if you're not based there
What drove the 87/100 rating
Risk Score Breakdown
- 01MINORSystem contracting significantly: 12 units declining 12.5% YoY indicates shrinking franchise network and potential brand momentum loss
- 02HIGHGoing Concern status is False: Franchisor's financial viability is questionable, raising sustainability and support concerns
- 03MEDNo Item 19 (Average Net Income) disclosed: Inability to validate profitability claims; $398,931 average revenue doesn't guarantee positive returns after 6% royalties, operating costs, and $40,000 franchise fee payback
- 04MINORUnprotected territory: No geographic exclusivity means franchisees face direct competition from other SOLDIERFIT units and potential cannibalization
- 05MEDHigh front-end costs relative to disclosed performance: $45,750-$279,734 investment with undisclosed net income creates unfavorable risk-reward profile
- 06MEDSmall franchise base with negative trajectory: 12 units total suggests limited brand recognition, economies of scale, and supplier negotiating power
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.