FranchiseVerdict
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B59/100FDD 2025

The Good Feet Store — Litigation & Risk

Retail · FDD Items 3, 4 & 5

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Moderate — Review

3 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
3
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
2
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$1.0M
Avg loan size
$515K
Participating lenders
2

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
Yes
Franchisor can match any purchase offer when you try to sell

What drove the 59/100 rating

Risk Score Breakdown

  1. 01HIGHActive consumer fraud litigation and settled class action for trade practices violations suggest systemic compliance or marketing issues
  2. 02HIGHCEO fraud judgment from Planet Fitness role raises governance and integrity concerns for current leadership
  3. 03MEDFinancial performance metrics (revenue/net income) not disclosed in FDD Item 19, preventing ROI validation
  4. 04MINORRoyalty structure escalation (1.75% to 5%) creates margin compression risk as franchisees mature
  5. 05MINORRapid 21% YoY unit growth may indicate aggressive recruitment masking underlying unit-level profitability issues
  6. 06MEDHigh initial investment ($256K-$618K) without disclosed average returns creates payback period uncertainty

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.