Not sure if True Movement is right for you?
Take our 1-minute franchise matching quiz to get in touch with a Franchise Advisor that can match you with your perfect franchise based on your goals, experience, and investment range.
Take the Quiz & Get MatchedTrue Movement
How much does True Movement cost?
Initial Investment Range
$334,650 to $1,056,200
Franchise Fee
$50,000
True Movement Franchising Inc. offers franchises for the operation of a True Movement® Studio providing stability, mobility and strength training for rehabilitation, conditioning and to enhance athletic performance.
Enjoy our partial free risk analysis below
Unlock the full risk analysis to access 9 more categories covering 100+ risks.
True Movement June 25, 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
True Movement Franchising Inc. (TMFI) is a new company with a startup balance sheet showing only $50,000 in cash. It has no operating history or established revenue streams beyond initial fees from new franchisees. This thin capitalization raises concerns about its financial ability to meet its support obligations, invest in the brand, or withstand unexpected challenges, which places significant risk on its first franchisees.
Potential Mitigations
- Your accountant must review the franchisor's startup financials and discuss the risks associated with investing in a thinly capitalized new entity.
- In discussions with the franchisor, ask about their specific plans for funding ongoing operations and support services.
- It is advisable to consult a business advisor to assess if the franchisor has sufficient resources to fulfill its promises.
High Franchisee Turnover
Low Risk
Explanation
This risk was not identified as TMFI is a new franchise system. Item 20 shows no operating franchises in the U.S. for the past three years. While this means there is no history of turnover, it also signifies the lack of a track record. The absence of data on franchisee success or failure is itself a significant risk, as the system's viability is entirely unproven in the marketplace.
Potential Mitigations
- Given the lack of history, speaking with any available Canadian licensees of the affiliated entity may provide some insight; your attorney can help frame questions.
- A business advisor can help you analyze the inherent risks of joining a new system with no performance data.
- Your accountant should help you create financial projections with very conservative assumptions due to the unproven nature of the business.
Rapid System Growth
Low Risk
Explanation
As a new franchise with no outlets currently operating, there is no history of rapid system growth. However, you should be aware that if the franchisor sells franchises too quickly, its support infrastructure can become strained. This may lead to inadequate training, site selection assistance, and ongoing support for franchisees, potentially harming the entire system's quality and reputation.
Potential Mitigations
- In your discussions, ask the franchisor about their controlled growth strategy and how they plan to scale their support staff and systems.
- A business advisor can help you evaluate whether the management team has a realistic plan for sustainable expansion.
- Your attorney should review the franchisor's support obligations in the agreement to ensure they are clearly defined.
New/Unproven Franchise System
High Risk
Explanation
TMFI is a brand new, unproven franchise system. It was incorporated in April 2025 and began franchising in June 2025, with no existing U.S. franchisees. The business model, brand recognition, and support systems are untested in the U.S. franchise market. Investing in a startup franchisor carries a significantly higher risk of system-wide challenges or failure compared to investing in an established brand with a proven track record.
Potential Mitigations
- Conduct extensive due diligence on the viability of the business concept and the backgrounds of the management team with a business advisor.
- Given the high risk, your attorney may be able to negotiate more franchisee-favorable terms in the agreement.
- Your accountant should help you develop financial models that account for the uncertainties of an unproven system.
Possible Fad Business
Medium Risk
Explanation
The business relies on a proprietary, patent-pending piece of exercise equipment in the specialized wellness industry. While the general market is established, specific fitness methods and equipment can be susceptible to trends. There is a risk that the business's long-term success could be tied to the lasting appeal of its specific methodology and platform, which may or may not prove to be a short-term fad, potentially impacting your long-term investment.
Potential Mitigations
- A business advisor can help you conduct independent market research to assess the long-term consumer demand for this specific type of fitness service.
- Discuss the franchisor's strategy for innovation and evolving the business model to stay relevant beyond initial trends.
- Consider the business's resilience to economic shifts and changing consumer preferences with your financial advisor.
Inexperienced Management
Medium Risk
Explanation
While the founder has industry experience, the franchising-specific management team appears to have been assembled recently for this launch. The franchisor entity itself has no history of managing a franchise system. This lack of collective franchising experience could lead to challenges in providing effective support, training, and strategic guidance to franchisees, increasing your operational risk as one of the first to join the system.
Potential Mitigations
- In your discussions with management, inquire specifically about their experience in supporting franchisees and managing a franchise network.
- A business advisor can help you assess whether the team has the necessary skills to grow a successful franchise system.
- Your attorney can help you understand what specific support commitments are enforceable in the franchise agreement.
Private Equity Ownership
Low Risk
Explanation
This risk was not identified in the FDD package. Private equity ownership can be a concern because PE firms may prioritize short-term returns over the long-term health of the franchise system. This can sometimes lead to increased fees, reduced franchisee support, or pressure to use certain vendors to maximize profits before the firm sells the brand.
Potential Mitigations
- It is always prudent to ask your attorney to review Item 1 of the FDD to understand the complete ownership structure.
- A business advisor can help research the ownership of any franchise system you consider.
- If a franchisor is PE-owned, speaking with existing franchisees is crucial to understand how ownership has impacted them.
Non-Disclosure of Parent Company
Low Risk
Explanation
This risk was not identified. The FDD discloses a parent company and a complex affiliate structure. In some cases, franchisors might be thinly capitalized subsidiaries, and the financial health of a non-disclosed parent could be crucial. If a parent is not disclosed or its financials are withheld when required, you may lack a complete picture of the system's true financial backing and stability.
Potential Mitigations
- Your attorney should always verify the corporate structure described in Item 1 and determine if parent financials are required.
- An accountant can analyze the relationship between a franchisor and its parent to assess financial dependencies.
- If a parent guarantees the franchisor's obligations, confirming the enforceability of that guarantee is a task for your attorney.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified as no predecessors are listed. A predecessor is a company from which the franchisor acquired the business. It is important because the predecessor's history, including any litigation or bankruptcy, can reveal inherited problems with the franchise system. A failure to properly disclose a predecessor's negative history could hide significant risks from a prospective franchisee.
Potential Mitigations
- Have your attorney carefully review Item 1 of any FDD to identify any predecessors and their history.
- A business advisor can assist in researching the reputation and performance of any predecessor system.
- If predecessors exist, speaking with franchisees who operated under them provides valuable historical context.
Pattern of Litigation
Medium Risk
Explanation
Item 3 discloses litigation against a franchisor affiliate involving a former licensee in Canada. The licensee's counterclaim alleges negligent misrepresentation, breach of contract, and failure to provide proper disclosure. For a brand-new system, having this type of legal dispute connected to a closely related entity and its business dealings is a significant warning sign about potential practices and the risks of future disputes within the U.S. system.
Potential Mitigations
- A thorough review of the details of this litigation with your attorney is essential to understand the nature of the allegations.
- Discuss this litigation directly with the franchisor to hear their perspective on the matter.
- A business advisor can help you assess how this legal issue might reflect on the franchisor's management and business practices.
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
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
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
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
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
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
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
Unlock Full Risk Analysis
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.