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B59/100FDD 2025

Urban Air Adventure Park — Litigation & Risk

Other · FDD Items 3, 4 & 5

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Elevated Risk

6 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
6
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
145
Government-backed loans issued
Default rate
4.6%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
3 loans
Loans charged off or defaulted
Total loan volume
$370.2M
Avg loan size
$2.6M
Participating lenders
49

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

What drove the 59/100 rating

Risk Score Breakdown

  1. 01HIGHActive litigation with franchisees over royalty non-payment and breach of contract suggests systemic franchisor-franchisee conflict and potential cash flow problems at corporate level
  2. 02MINORRegulatory actions in Maryland and California regarding franchise disclosure indicate compliance failures and potential legal liability exposure for new franchisees
  3. 03HIGHModest unit growth (7.8% YoY) combined with high capital requirements ($3.1M–$8.4M) and litigation history suggests difficulty in unit recruitment and retention
  4. 04MINORAverage net income of $324,640 on $3.2M revenue (10.1% margin) is thin for an entertainment venue with $3.1M+ startup costs and 7% royalty drag, resulting in 5-9 year payback minimum
  5. 05MINORDispute with primary attraction installer (Leap of Faith Adventures) creates supply chain risk and potential cost increases for equipment and maintenance
  6. 06HIGHHigh franchise fee ($100,000) combined with litigation track record increases financial risk for new entrants with limited recourse

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.