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F80/100FDD 2023

Volofit — 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
80 / 100
FranchiseVerdict composite
Rating
AVOID
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
5
Government-backed loans issued
Default rate
100.0%
vs <3% typical · system-wide
5-yr default rate
100.0%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$1.5M
Avg loan size
$298K
Participating lenders
2

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

What drove the 80/100 rating

Risk Score Breakdown

  1. 01MINOROnly 2 franchised units in entire system with no corporate locations mentioned—indicates either pre-revenue or severely underperforming brand
  2. 02MINORNo average unit volume (AUV) or net income disclosure—inability or unwillingness to provide financial performance data is critical warning sign
  3. 03HIGHGoing Concern noted as False—suggests potential financial distress or viability questions with franchisor
  4. 04MINORUnprotected territory creates direct competition risk; franchisees could cannibalize each other's revenue in same market
  5. 05MINORHigh initial investment ($398.5K–$734.7K) combined with opaque financials creates severe ROI uncertainty
  6. 06MINOR100% unit growth (1→2 units) is statistically meaningless and masks stagnation; system is not scaling
  7. 07MED7% royalty on undisclosed revenue means franchisees cannot model cash flow or break-even scenarios

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.