FranchiseVerdict
True Movement logo
B65/100FDD 2026

True Movement — Litigation & Risk

Health & Fitness · FDD Items 3, 4 & 5

Back to overview

Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
65 / 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
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Delaware
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MEDZero disclosed units with unknown growth trajectory raises questions about system viability and franchisee recruitment success
  2. 02MEDNo average revenue or net income disclosed (no Item 19 equivalent) prevents accurate ROI assessment on $337,550–$1,055,250 investment
  3. 03HIGHRecent litigation (Sept 2023–2025) involving misrepresentation and breach of contract claims suggests franchisor-franchisee relationship tensions
  4. 04MINORSettlement required franchisor affiliate to pay $40,000 CAD, indicating potential culpability in dispute despite confidentiality clause
  5. 05MEDHigh initial investment range ($337,550–$1,055,250) with 7% royalty creates significant breakeven pressure without disclosed performance data
  6. 06MED5-year term is relatively short; limited disclosed renewal or franchisee retention data

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.