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D72/100FDD 2025

Strive 11 Fitness — 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
72 / 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
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
California
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 unit in system with unknown growth trajectory — suggests either brand-new concept or failed expansion
  2. 02MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) — impossible to validate ROI on $150.5K–$250K investment
  3. 03HIGH'Going Concern' status is FALSE — indicates franchisor may have financial instability or viability concerns
  4. 04MED6% weekly royalty on undisclosed revenue base creates uncertainty about actual profit margins
  5. 05MINORSingle location makes territory protection claim unverifiable and raises questions about scalability
  6. 06MINORHigh initial investment ($35K franchise fee + $115.5K–$215K build-out) with no comparable unit performance data

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.