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D71/100FDD 2025

The Camp Transformation Center — Litigation & Risk

Health & Fitness · FDD Items 3, 4 & 5

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Moderate — Review

5 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
5
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
71 / 100
FranchiseVerdict composite
Rating
CAUTION
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
26
Government-backed loans issued
Default rate
57.1%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
4 loans
Loans charged off or defaulted
Total loan volume
$5.6M
Avg loan size
$214K
Participating lenders
17

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
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
The state where the Center is located
State whose law governs disputes — relevant if you're not based there

What drove the 71/100 rating

Risk Score Breakdown

  1. 01HIGHGoing concern warning indicates franchisor financial distress or viability questions
  2. 02MEDUnit count declined 21.6% YoY (80 units) suggesting franchisee dissatisfaction and system contraction
  3. 03HIGHMultiple active and concluded litigation cases including pending DA investigation for unfair competition and false advertising
  4. 04MINORHistory of labor law violations and wage/hour disputes raising operational/compliance concerns
  5. 05MINORNo protected territory combined with declining unit count creates competitive risk for franchisees
  6. 06MINORNo Item 19 financial performance representation limits transparency on actual franchisee profitability claims
  7. 07MINORUnregistered franchise offer consent order indicates prior regulatory violations in Washington

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.