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D72/100FDD 2025

Vanguard Key Clubs — Litigation & Risk

Health & Fitness · FDD Items 3, 4 & 5

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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
72 / 100
FranchiseVerdict composite
Rating
CAUTION
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
New Hampshire
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MINOROnly 6 units in system with unknown growth trajectory suggests minimal track record and high failure risk
  2. 02MINORNo average revenue or net income disclosure (no Item 19) prevents ROI validation and raises transparency concerns
  3. 03MINORWide investment range ($207K-$528K) with vague cost breakdown indicates potential hidden fees or inconsistent unit economics
  4. 04HIGHGoing Concern = False indicates franchisor may lack financial stability or viability projections
  5. 05MINORExtremely small franchise system (6 units) creates sustainability and support infrastructure risks
  6. 06MED10-year term locks franchisee into unproven business model with limited exit flexibility
  7. 07MINORRoyalty structure incentivizes multi-unit growth but appears designed to mask struggling single-unit economics

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.