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Fire Fitness Affiliation, LLC

FIRE Fitness Affiliation, LLC
https://www.firefitnesscamp.com
1-715-544-6777
3050 Village Park Drive, Plover, WI 54467

Initial Investment Range

$183,380 to $506,698

Franchise Fee

$55,785 to $90,945

As a FIRE Fitness Camp® franchisee, you will operate a retail unit providing group personal training and fitness services to retail customers using designated or authorized “FIRE Fitness Camp®” fitness programs and methods.

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Fire Fitness Affiliation, LLC April 1, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: July 16, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
2
3
5

Disclosure of Franchisor's Financial Instability

Medium Risk

Explanation

The franchisor's audited 2024 financial statements show a current ratio of less than 1.0 (current liabilities exceed current assets), which can indicate a risk to short-term financial health. Additionally, a significant loan to a related party ($146,126) reduces cash available for supporting the franchise system. While the company is profitable, these balance sheet factors could potentially impact its ability to fund its obligations to you.

Potential Mitigations

  • A franchise accountant should thoroughly analyze the franchisor's financial statements, including all footnotes and balance sheet trends.
  • In discussions with the franchisor, it would be prudent to ask about the nature of the related-party loan and plans for its repayment.
  • Your business advisor can help you assess if the franchisor's financial position is strong enough to provide promised support.
Citations: Item 21, Exhibit D

High Franchisee Turnover

High Risk

Explanation

Item 20 data reveals a pattern of franchise units ceasing operations. In a small system of approximately 23 units, there were 3 cessations in 2023 and 1 in 2024. The fact that the number of units ceasing operations in 2023 matched the number of new units opened is a significant indicator of potential systemic issues, franchisee dissatisfaction, or challenges with the business model's profitability or sustainability.

Potential Mitigations

  • It is critical to contact a significant number of current and former franchisees from the list in Exhibit E to understand their experiences.
  • With your accountant, analyze the franchisee turnover rate over the past three years and discuss its potential implications for your investment.
  • Your attorney can help you frame specific questions for the franchisor about the reasons for these unit cessations.
Citations: Item 20

Rapid System Growth

Low Risk

Explanation

This risk was not identified in the FDD Package. The data in Item 20 indicates the franchise system has been stagnant or experienced slight contraction, not rapid growth. A franchisor expanding too quickly can sometimes strain its ability to provide adequate support to new and existing franchisees. This does not appear to be a current concern for this system.

Potential Mitigations

  • When evaluating any franchise, your accountant can help assess if the franchisor's financial resources align with its growth plans.
  • A business advisor can help you gauge the quality of franchisor support by interviewing a mix of new and established franchisees.
  • Your attorney should review the franchisor's contractual support obligations to ensure they are specific and enforceable.
Citations: Not applicable

New/Unproven Franchise System

High Risk

Explanation

The franchisor began offering franchises in February 2019 and the system consists of only 23 units with stagnant growth, as shown in Items 1 and 20. This indicates a relatively new and unproven franchise model. Investing in a newer system carries higher risks, as its brand recognition, operational systems, and long-term market viability may not be fully established, potentially impacting your chances for success.

Potential Mitigations

  • Conducting thorough due diligence on the management team's industry and franchising experience is essential with your business advisor.
  • Speaking with the earliest franchisees in the system can provide valuable insight into its evolution and the franchisor's performance.
  • Your accountant should carefully assess the franchisor's capitalization and financial stability to ensure it can support its system.
Citations: Items 1, 2, 20, 21

Possible Fad Business

Medium Risk

Explanation

The business model, centered on intensive group fitness, could be perceived as part of a competitive and trend-driven industry. The stagnant system growth shown in Item 20 might suggest that the initial trend has plateaued. There is a risk that if consumer preferences shift, the business could suffer, while your long-term contractual obligations would remain.

Potential Mitigations

  • A business advisor can help you conduct independent market research to assess the long-term consumer demand for this specific fitness concept.
  • It is important to ask the franchisor about their plans for innovation and adapting the business model to stay relevant.
  • Consider the business's resilience to economic shifts and its differentiators compared to other fitness trends with your financial advisor.
Citations: Items 1, 11

Inexperienced Management

Medium Risk

Explanation

Item 2 shows that the key executives' experience is primarily concentrated within the FIRE Fitness brand itself, which they founded. While they have operated the concept since 2014, the FDD does not detail extensive experience in managing a larger, national franchise system. This could present a risk, as supporting a network of franchisees requires a different skill set than operating company-owned locations.

Potential Mitigations

  • During your due diligence, asking the franchisor about the specific franchising experience of their support team is advisable.
  • Speaking with current franchisees about the quality and effectiveness of the franchisor's support systems is crucial.
  • A business advisor can help you assess if the management team's background is sufficient to support your business's growth.
Citations: Items 1, 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD Package. Item 1 does not indicate that the franchisor, FIRE Fitness Affiliation, LLC (FIRE Fitness), is owned or controlled by a private equity firm. Decisions are likely driven by the founders rather than a short-term investment fund's objectives. This can be beneficial for long-term brand health.

Potential Mitigations

  • For any franchise investment, it is wise to have your attorney confirm the ownership structure and identify all controlling entities.
  • Should a franchisor be acquired by a private equity firm in the future, a business advisor can help you understand the potential impacts.
  • Understanding the franchisor's long-term vision is important, a conversation best had with a financial advisor.
Citations: Not applicable

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified in the FDD Package. Item 1 does not disclose any parent company for FIRE Fitness. The franchisor entity appears to be the primary operating company. Therefore, the risk of un-disclosed financial instability or control from a hidden parent entity does not appear to be present.

Potential Mitigations

  • Your attorney can help verify the corporate structure of any franchisor you consider to ensure there are no undisclosed parent or affiliate relationships.
  • An accountant's review of the provided financials is the best way to assess the stability of the disclosed franchisor entity.
  • Always ask a franchisor to clarify its corporate structure and any guarantees with assistance from your business advisor.
Citations: Not applicable

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD Package. Item 1 does not disclose any predecessor entities from which FIRE Fitness acquired its assets or that previously offered franchises for this system. This means the disclosed operational and legal history in Items 3, 4, and 20 pertains directly to the current franchisor, providing a clearer due diligence path.

Potential Mitigations

  • When reviewing an FDD, your attorney should always check Item 1 for any disclosed predecessors.
  • If a predecessor exists, researching their history for litigation or bankruptcy is a key due diligence step for your attorney to undertake.
  • Discussing the transition from any predecessor with long-term franchisees can provide valuable context, a task for your business advisor.
Citations: Not applicable

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD Package. Item 3 states that there is no litigation that requires disclosure. This is a positive finding, as it suggests the franchisor is not currently involved in significant legal disputes with franchisees or other parties concerning issues like fraud, misrepresentation, or breach of contract.

Potential Mitigations

  • Even with no disclosed litigation, consulting with your attorney to perform an independent search for legal actions can be a prudent step.
  • Always ask current and former franchisees about any disputes they may have had, even if they didn't result in litigation.
  • Understanding the dispute resolution clauses in the Franchise Agreement with your attorney is important regardless of litigation history.
Citations: Not applicable
2

Disclosure & Representation Risks

Total: 15
6
2
7

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
5
3
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

4

Legal & Contract Risks

Total: 16
8
4
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
5
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
4
2
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
2
2
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
6
5
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
11
4
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 1
1
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.