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D72/100FDD 2026

Youthful Beginnings — Litigation & Risk

Health & Wellness - Other · 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
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
Virginia
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status is FALSE — indicates financial distress or uncertainty at franchisor level
  2. 02MINOROnly 7 units system-wide — extremely small, fragile franchise with minimal support infrastructure
  3. 03MINORZero financial disclosure (no Item 19) — cannot verify claimed profitability or typical unit economics
  4. 04MINORHigh investment range ($191,900–$367,700) relative to system size creates disproportionate risk
  5. 05MINORUnknown unit growth trajectory — no clarity on system expansion or contraction trends
  6. 06MED6% royalty on undisclosed revenues — cannot assess true cost burden or break-even threshold

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.