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D75/100FDD 2026

Starz Program — 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
75 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

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

What drove the 75/100 rating

Risk Score Breakdown

  1. 01MINORUnprotected territory creates direct competition risk among 7 franchisees
  2. 02MINORFranchise fee ($39,000) represents 59% of initial investment floor, creating high cost-to-entry burden relative to $6,765 average net income
  3. 03MINORAverage net income of $6,765 annually yields only 5.2% ROI on $130,625 max investment in year one—far below franchise industry benchmarks
  4. 04MEDMinimal unit growth (7 total units) suggests limited brand scale, market acceptance, or franchisee recruitment success
  5. 05MINOR8% royalty on $10,007 average revenue generates only $801 annually per unit—indicates either weak sales performance or unsustainable unit economics
  6. 06MEDNo Item 19 (financial performance representations) disclosed—inability to validate claimed revenue/income figures independently

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.