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B55/100FDD 2026

Structural Elements — Litigation & Risk

Health & Wellness - Other · 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
55 / 100
FranchiseVerdict composite
Rating
MODERATE
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
No
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 55/100 rating

Risk Score Breakdown

  1. 01MEDUnit count declined 9.1% YoY (from ~11 to 10 units) indicating system contraction and potential franchisee dissatisfaction
  2. 02MEDNet income not disclosed in FDD — inability to assess actual profitability despite $85.5K average revenue claim
  3. 03MINORNo protected territory — franchisees face direct competition from other franchisees and company-owned units in same markets
  4. 04MEDLow unit count (10 total) suggests nascent or struggling system with limited brand recognition and support infrastructure
  5. 05MINORRoyalty structure creates dual burden: 8% of gross receipts PLUS $200/month minimum ($2,400 annually) reducing thin margins
  6. 06MINORLow initial investment ($11.1K–$23.3K) attractive but may indicate insufficient capital for proper operations and working capital

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.