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B59/100FDD 2025

Team Up Athletics — Litigation & Risk

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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
59 / 100
FranchiseVerdict composite
Rating
MODERATE
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
4
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$932K
Avg loan size
$233K
Participating lenders
3

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
3 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
Utah
State whose law governs disputes — relevant if you're not based there

What drove the 59/100 rating

Risk Score Breakdown

  1. 01MINORNo average revenue or net income disclosure (Item 19) — impossible to assess ROI on $51.5K-$129.5K investment
  2. 02HIGHGoing Concern status is FALSE — indicates potential financial instability or structural concerns at franchisor level
  3. 03MINORRoyalty structure includes $500/month minimum ($6K annually) starting month 7 — high fixed cost burden on new locations
  4. 04MINOR25 total units with 78.6% YoY growth is mathematically weak — suggests only ~14 units existed prior year; system lacks scale and stability
  5. 05MINOR5-year term is shorter than industry standard (10 years typical) — may indicate franchisor uncertainty or high turnover risk
  6. 06MINORHigh initial investment range ($51.5K-$129.5K) combined with no profitability data creates severe visibility gap

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.