B57/100FDD 2025
The Exercise Coach — Litigation & Risk
Education - Tutoring & Test Prep · FDD Items 3, 4 & 5
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
57 / 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
93
Government-backed loans issued
Default rate
14.3%
vs <3% typical · system-wide
5-yr default rate
22.2%
Defaults
4 loans
Loans charged off or defaulted
Total loan volume
$17.2M
Avg loan size
$185K
Participating lenders
34
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
Texas
State whose law governs disputes — relevant if you're not based there
What drove the 57/100 rating
Risk Score Breakdown
- 01MEDNet income not disclosed in Item 19 — unable to validate profitability claims against $259k-$390k investment
- 02MINORAverage revenue of $291k generates only ~$17.5k annual royalties at 6%, creating thin margins for franchisor support
- 03MINOR10.5% YoY unit growth is modest for fitness/wellness sector; no disclosure of unit closures or turnover rate
- 04MINORHigh initial investment ($259k-$390k) with $1,000/month minimum royalty creates break-even pressure on slower-growing locations
- 05MINORFitness/wellness category historically dependent on membership retention and local competition — no market saturation data provided
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.