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B55/100FDD 2025

Vertica Fitness — 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
55 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

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

What drove the 55/100 rating

Risk Score Breakdown

  1. 01MEDOnly 7 units in system with aggressive 66.7% YoY growth suggests extremely early-stage franchise with unproven scalability and limited peer support network
  2. 02MEDNo Item 19 (Financial Performance Representations) disclosed — cannot independently verify the $302,283 average revenue or $144,585 net income claims
  3. 03MINORHigh initial investment ($194,400–$324,275) relative to system size creates significant risk if growth stalls or brand fails to gain traction
  4. 04MINOR8.25% royalty on gross revenues (not net) means franchisees pay royalties even during unprofitable months, reducing financial flexibility
  5. 05MINOREarly growth rate (66.7% YoY) is difficult to sustain and may indicate cherry-picked early adopters rather than repeatable 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.