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Ninja Trix
How much does Ninja Trix cost?
Initial Investment Range
$229,600 to $386,500
Franchise Fee
$53,400 to $69,900
The franchisee will own and operate a studio that offers a children’s activity program featuring a proprietary curriculum that combines elements from martial arts, tumbling, and parkour and featuring unique obstacle courses.
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Ninja Trix April 21, 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.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
The franchisor's audited financial statements reveal a state of insolvency. As of year-end 2024, NINJA TRIX FRANCHISING, LLC (Ninja Trix LLC) had a negative net worth of ($124,118) and a net loss of ($138,270). This financial weakness may significantly impair its ability to provide support, grow the brand, or meet its obligations to you, presenting a substantial risk to your investment.
Potential Mitigations
- A franchise accountant should thoroughly analyze the franchisor's financial statements, including footnotes and cash flow, to assess its viability.
- It is crucial to discuss with your attorney the potential implications of a franchisor's insolvency on your franchise agreement.
- A business advisor can help you evaluate if the franchisor has sufficient capital to fulfill its support obligations without relying on new franchise sales.
High Franchisee Turnover
High Risk
Explanation
Item 20 tables for 'Curriculum Units' show a significant decline, from 57 units at the start of 2022 to just 12 by year-end 2024. While Ninja Trix LLC distinguishes these from the franchise model being offered, this high turnover among businesses using the same core curriculum is a significant warning sign about the potential viability or satisfaction with the system. This suggests a potentially unstable system or a concept that is difficult to sustain profitably.
Potential Mitigations
- Your attorney should help you formulate questions for the franchisor to explain the high turnover rate among its curriculum licensees.
- Contacting former licensees from the Item 20 list is critical to understand their reasons for leaving the system.
- Discuss the potential impact of this turnover on brand reputation and system stability with your business advisor.
Rapid System Growth
Low Risk
Explanation
The information in this FDD package does not indicate that rapid system growth is a current risk. The data in Item 20 shows that the franchise system is new with no operating franchisees as of the end of 2024. Uncontrolled growth can strain a franchisor's ability to provide adequate support, so while not a present risk, monitoring the pace of future growth is important for ensuring system quality and support levels are maintained.
Potential Mitigations
- Your business advisor can help you monitor the pace of franchise sales against the growth of the franchisor's support infrastructure.
- Regularly communicating with other franchisees about the quality of support can provide early warnings if the system is growing too fast.
- An attorney can review any future commitments the franchisor makes regarding support levels as the system expands.
New/Unproven Franchise System
High Risk
Explanation
Ninja Trix LLC is a new franchisor, formed in March 2023, with no operating franchisees at the end of 2024. The business model relies on a single affiliate-owned studio for its operational proof of concept and financial performance data. This lack of a track record for the franchise system itself, combined with the franchisor's weak financial position, presents a significant risk regarding the viability of the business model and the adequacy of its support systems.
Potential Mitigations
- A thorough review of the management team's prior industry experience is crucial, which a business advisor can help you assess.
- Your accountant should perform a deep analysis of the financial projections, given the limited historical data for the franchise system.
- It is advisable for your attorney to attempt negotiating more protective terms in the franchise agreement to offset the higher risk.
Possible Fad Business
Medium Risk
Explanation
The business concept, combining martial arts, tumbling, and parkour, is described in Item 1 as part of an 'emerging' market. While this can present an opportunity, it may also carry the risk of being a fad with limited long-term consumer demand. A business tied to a fleeting trend could face significant challenges once public interest wanes, potentially impacting your long-term viability even though your contractual obligations would continue.
Potential Mitigations
- A business advisor can help you conduct independent market research to assess the long-term sustainability of demand for this specific type of children's activity.
- You should evaluate the franchisor's stated plans for innovation and curriculum development to gauge its ability to adapt to changing trends.
- Working with your financial advisor to create conservative, long-term financial projections is a prudent step.
Inexperienced Management
Medium Risk
Explanation
The management team detailed in Item 2 has extensive experience in operating martial arts schools but very limited direct experience in managing a franchise system. Ninja Trix LLC itself is a new entity. While industry knowledge is a positive, the lack of a proven track record in franchising could lead to challenges in providing effective franchisee support, training, and strategic growth for a national system, which presents a risk to your investment.
Potential Mitigations
- A business advisor can help you thoroughly vet the specific franchise-related experience of the management team.
- You should ask the franchisor directly about how they plan to support a franchise network and who on their team has that specific expertise.
- Speaking with the earliest new franchisees, once they are established, will be crucial to gauge the quality of support.
Private Equity Ownership
Low Risk
Explanation
This risk was not identified in the FDD package, as Item 1 does not indicate that the franchisor is owned by a private equity firm. When PE firms own a franchisor, they may prioritize short-term returns for their investors over the long-term health of franchisees. This can sometimes lead to increased fees, reduced support, or a quick sale of the franchise system, creating uncertainty for franchisees.
Potential Mitigations
- A business advisor can help you research the ownership structure of any franchise system to understand its strategic priorities.
- An attorney should be consulted to review any clauses in the Franchise Agreement related to the sale or transfer of the franchise system.
- Speaking with franchisees in PE-owned systems can offer insight into how that ownership model affects their business.
Non-Disclosure of Parent Company
Medium Risk
Explanation
The FDD discloses that key intellectual property, including the trademarks, is owned by an affiliate, Martial Arts America, Inc., and licensed to the franchisor. While the franchisor's financials are provided, the financials of the affiliate IP holder are not. This structure means your right to use the brand depends on a contract between two other parties. The financial health of the affiliate holding the IP is unknown, creating a layer of risk to brand stability.
Potential Mitigations
- Your attorney should carefully review the licensing agreement between the franchisor and its affiliate to understand its terms and stability.
- It is wise to ask the franchisor about the financial health and long-term plans of the affiliate that owns the trademarks.
- A business advisor can help you assess the risks associated with such a multi-layered intellectual property structure.
Predecessor History Issues
Low Risk
Explanation
This specific risk was not identified in the FDD package, as Item 1 does not disclose any predecessors for Ninja Trix LLC. When a franchisor has predecessors, it's important to review their history for issues like litigation, bankruptcy, or high franchisee turnover. A negative history could indicate inherited systemic problems or a rebranded concept with a poor track record, which could affect your future success.
Potential Mitigations
- An attorney's review of FDD Item 1 is essential to identify any predecessor entities and their history.
- If predecessors exist, a business advisor can help you conduct independent research into their past performance and reputation.
- It is important to ask long-term franchisees about their experience under any previous ownership or brand name.
Pattern of Litigation
Low Risk
Explanation
This risk was not identified in the FDD package, as Item 3 discloses no litigation against the franchisor. A pattern of lawsuits, especially those initiated by franchisees alleging fraud, misrepresentation, or breach of contract, can be a major red flag. It may indicate systemic problems within the franchise, such as unprofitability, lack of support, or deceptive sales practices. High litigation volume suggests a contentious relationship between the franchisor and its franchisees.
Potential Mitigations
- It's crucial that your attorney carefully reviews Item 3 for any disclosed litigation and its potential implications.
- A business advisor can help you research public records for any litigation that may not be disclosed in the FDD.
- If litigation is present, speaking with franchisees involved can provide valuable, direct insight into the nature of the disputes.
Disclosure & Representation Risks
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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Financial & Fee Risks
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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Legal & Contract Risks
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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Territory & Competition Risks
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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Purchase the complete risk review to see all 102 risks across all 10 categories.
Regulatory & Compliance Risks
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
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Franchisor Support Risks
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
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Operational Control Risks
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.
Term & Exit Risks
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.
Miscellaneous Risks
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.