FranchiseVerdict
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D75/100FDD 2024

Vibeflow Yoga — 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
75 / 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
Texas
State whose law governs disputes — relevant if you're not based there

What drove the 75/100 rating

Risk Score Breakdown

  1. 01MINORZero existing franchise units despite established brand — suggests failed expansion or new concept
  2. 02HIGHGoing Concern status is FALSE — indicates potential financial viability issues at corporate level
  3. 03MEDNo average revenue or net income disclosed — impossible to validate ROI or profitability claims
  4. 04MINORHigh initial investment ($440k-$656k) with no unit growth data creates significant unvalidated risk
  5. 05MINORUnprotected territory allows corporate to open competing locations and cannibalize franchisee revenue
  6. 06MED6% royalty on undisclosed sales with no Item 19 financial performance representations
  7. 07HIGHNo litigation disclosed but zero operating units raises question of whether brand has ever been tested in market

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.