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How much does Special Strong cost?
Initial Investment Range
$85,000 to $162,250
Franchise Fee
$47,250 to $107,250
You will provide virtual and on-site health and fitness services, including certified personal training, group fitness, aquatics and nutrition services, to individuals of all ages with mental, physical, and/or cognitive challenges under the trade name "SPECIAL STRONG."
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Special Strong May 7, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: August 19, 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 explicitly warns that its financial condition “calls into question [its] financial ability to provide services and support to you.” Audited financials confirm this, showing a 2024 net loss of over $443,000 and a members’ deficit of over $391,000. This indicates a significant risk that Strong Kingdom, LLC (Strong Kingdom) may lack the resources to meet its obligations, potentially jeopardizing your investment and the system’s viability.
Potential Mitigations
- A franchise accountant must thoroughly analyze the franchisor's financial statements, including all notes and trends, to assess its solvency and dependency on franchise fees.
- It is crucial to ask the franchisor directly about its plans to address its financial instability and support franchisee growth.
- Your attorney should investigate if any states have required financial assurances like a bond or fee deferral, and explain the protections these offer.
High Franchisee Turnover
High Risk
Explanation
Item 20 data reveals a notable rate of franchisee turnover for a small system. In the last two years, there have been two terminations and one unit that 'ceased operation' and was merged into another territory, out of a small base of 6-9 franchisees. This rate of churn could indicate underlying issues with the business model's profitability, franchisor support, or franchisee satisfaction, presenting a significant risk to your potential success within the system.
Potential Mitigations
- It is imperative to contact a significant number of former franchisees listed in Item 20 to understand their reasons for leaving the system.
- Your accountant can help you calculate the effective annual turnover rate and compare it to any available industry benchmarks.
- In discussions with the franchisor, your business advisor can help you ask specific questions about the circumstances behind each termination and ceased operation.
Rapid System Growth
High Risk
Explanation
The franchisor projects opening 20 new units in the next fiscal year, a very aggressive expansion from its current base of nine. This rapid growth, especially when paired with the company's disclosed financial weakness and negative cash flow, creates a substantial risk. Strong Kingdom may be unable to scale its support systems, training, and staff adequately, which could lead to diminished support quality and operational challenges for all franchisees, including you.
Potential Mitigations
- A business advisor can help you question the franchisor about their specific, funded plans to scale support infrastructure to match projected unit growth.
- Discussing the quality and responsiveness of current support with a wide range of existing franchisees is a critical due diligence step.
- Your accountant should review the franchisor's financial capacity to fund this expansion and support new and existing units simultaneously.
New/Unproven Franchise System
High Risk
Explanation
Strong Kingdom began franchising in April 2020 and has a limited operating history with only nine franchised outlets at the end of 2024. This newness, combined with its disclosed financial instability, means the business model is not fully proven in a franchise context. You face higher risks associated with underdeveloped systems, potential operational challenges, and limited brand recognition compared to more established franchise systems. The long-term viability is less certain.
Potential Mitigations
- With your business advisor, conduct extensive due diligence on the long-term market demand for this niche service.
- It is vital to speak with the earliest franchisees in the system to learn about their experiences and the evolution of franchisor support.
- Your attorney might be able to negotiate more franchisee-favorable terms to compensate for the higher risk of investing in a new system.
Possible Fad Business
Medium Risk
Explanation
The business model, which focuses on fitness for a special needs population, is a niche market. While the demand is valid, the long-term scalability and profitability of this specific concept as a franchise is not as established as more mainstream fitness models. The affiliate-owned location's gross revenue, shown in Item 19, has been declining over the past three years, which may raise questions about the sustainability and growth potential of the core business concept.
Potential Mitigations
- Engaging a business advisor to independently research the size and long-term growth potential of this niche market segment is recommended.
- You should ask the franchisor to explain the reasons for the declining revenue trend at its affiliate location.
- Your accountant can help you build financial models that account for the potential limitations of a niche market.
Inexperienced Management
Low Risk
Explanation
This risk was not identified in the FDD package. The executives detailed in Item 2 appear to have relevant prior experience in the fitness industry and with the specific business concept. In general, inexperienced management can be a risk if they lack the background to provide effective support, training, and strategic direction, potentially harming the entire system.
Potential Mitigations
- It is always prudent to research the professional backgrounds of the key executives listed in Item 2 using online resources.
- A business advisor can help you assess whether the management team's collective experience is adequate for supporting a franchise system.
- Asking current franchisees about their direct experiences with the leadership team provides valuable, real-world insight.
Private Equity Ownership
Low Risk
Explanation
This risk was not identified in the FDD package, as Item 1 and Item 2 do not indicate ownership by a private equity firm. When a franchisor is owned by a PE firm, there can be a risk that decisions prioritize short-term investor returns over the long-term health of franchisees, potentially leading to increased fees, reduced support, or a quick sale of the system.
Potential Mitigations
- If a franchisor is PE-owned, a business advisor can help you research the firm's track record with other franchise brands.
- Reviewing the assignment clauses in the Franchise Agreement with your attorney is critical to understand what happens if the system is sold.
- You should always ask current franchisees about any changes in operations or philosophy since a PE acquisition.
Non-Disclosure of Parent Company
Low Risk
Explanation
This risk was not identified. Item 1 of the FDD clearly states that Strong Kingdom does not have a parent company. It properly discloses its affiliate companies and their roles. Failing to disclose a parent company can be a serious issue, as it may hide the true financial backing, control structure, or potential risks associated with the ultimate owner of the franchise system.
Potential Mitigations
- Your attorney can verify a company's corporate structure and identify any parent or holding companies that should be disclosed.
- If a parent company exists and guarantees the franchisor's performance, an accountant should review the parent's financial statements.
- A business advisor can help assess the operational relationship between a franchisor and its parent company.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified in the FDD. Item 1 indicates the company does not have a predecessor and transparently discusses the history of its affiliate that previously operated the business. When a franchisor has a predecessor, it is important to scrutinize that entity's history for issues like litigation, bankruptcy, or high franchisee failure rates, as these could indicate historical problems with the brand or system.
Potential Mitigations
- Your attorney should carefully review Item 1 for any disclosed predecessors and analyze their history in Items 3 and 4.
- Independent research into a predecessor's business reputation can provide valuable context, a task a business advisor could assist with.
- It is wise to ask long-term franchisees about their experiences under any previous ownership or corporate structure.
Pattern of Litigation
Low Risk
Explanation
This risk was not identified in the FDD package. Item 3 explicitly states that no litigation is required to be disclosed. A pattern of litigation, particularly lawsuits from franchisees alleging fraud or misrepresentation, can be a major red flag indicating systemic problems. A high number of suits initiated by the franchisor against franchisees might also suggest an overly aggressive or unsupportive culture.
Potential Mitigations
- An attorney should always carefully review any litigation disclosed in Item 3 to understand the nature and status of the claims.
- Independent online court record searches can sometimes reveal additional litigation not required to be disclosed in the FDD.
- Speaking with current and former franchisees can provide context for any disclosed legal 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
Purchase the complete risk review to see all 102 risks across all 10 categories.
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
Purchase the complete risk review to see all 102 risks across all 10 categories.
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.