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B63/100FDD 2026

Vibe House Pilates — 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
63 / 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
Indiana
State whose law governs disputes — relevant if you're not based there

What drove the 63/100 rating

Risk Score Breakdown

  1. 01MINOROnly 2 operating units with unknown growth trajectory suggests early-stage or stalled system expansion
  2. 02MEDNo Item 19 (Financial Performance Representations) disclosed — cannot independently verify the $345,778 average net income claim
  3. 03MINORHigh initial investment range ($297K-$467K) relative to system size creates concentration risk with minimal franchisee reference pool
  4. 04MINORMinimum royalty of $500/week ($26,000 annually) is fixed floor cost — significantly impacts profitability at lower revenue stores
  5. 05HIGHGoing Concern status is 'False' — unclear if franchisor has financial stability to support franchisees long-term
  6. 06MINORExtreme data sparsity (only 2 units) makes risk assessment speculative; no track record of sustainable multi-unit growth

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.