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Vaura

Vaura Incorporated
https://www.vaurapilates.com
1-737-787-1955
3601 South Congress Avenue, Building E, Austin, TX 78704

Initial Investment Range

$833,000 to $1,280,100

Franchise Fee

$370,000 to $408,600

The franchise is for the establishment and operation of a Vaura Studio which provides group fitness and low impact pilates exercise training, using a distinctive system of exercise training.

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Vaura March 31, 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
3
2
5

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor’s financial statements for the year ending December 31, 2024, show a net loss of $181,093 and a negative stockholder's equity (deficit) of $180,993. The company is also heavily indebted to its affiliates. This financial weakness, also listed as a “Special Risk” by the franchisor, raises significant questions about its ability to support you and sustain its operations without ongoing affiliate funding, jeopardizing your investment.

Potential Mitigations

  • A franchise accountant should analyze these financial statements, including all footnotes and the large 'Due to affiliates' liability, to assess the franchisor's viability.
  • Discuss the franchisor's plan for achieving profitability and reducing its reliance on affiliate funding with your business advisor.
  • Your attorney should investigate if any financial assurance, like a bond or escrow, is required by state regulators due to this financial condition.
Citations: Item 21, Exhibit C

High Franchisee Turnover

Low Risk

Explanation

This risk was not identified in the FDD package. The system is new, with only one franchised outlet opened in 2024 and no reported closures, terminations, or transfers. A high turnover rate can signal systemic problems, such as unprofitability or poor franchisor support. Monitoring this in future FDDs is crucial for assessing system health.

Potential Mitigations

  • As the system grows, an accountant can help you analyze future Item 20 tables to calculate the franchisee turnover rate.
  • A business advisor can help you compare the system's future turnover rate against industry benchmarks for fitness franchises.
  • Speaking with former franchisees listed in future FDDs will be a crucial step your attorney can guide you through.
Citations: Not applicable

Rapid System Growth

Low Risk

Explanation

This risk was not identified in the FDD. Item 20 shows the system is in its infancy, with only one operational franchisee as of the end of 2024. Therefore, there is no evidence of overly rapid growth straining support systems. Monitoring the pace of growth in future FDDs will be important.

Potential Mitigations

  • If the system grows rapidly in the future, your business advisor can help you assess if the franchisor's support infrastructure is scaling appropriately.
  • Ongoing conversations with other franchisees would be vital to gauge the quality of support as the system expands.
  • An accountant can review future financial statements to see if the franchisor is investing profits back into support systems.
Citations: Not applicable

New/Unproven Franchise System

High Risk

Explanation

The franchisor, Vaura Incorporated, is an unproven, startup system, having been incorporated in late 2023 with only one operating franchisee as of the FDD issuance date. This is explicitly noted as a “Special Risk.” Investing in a new system carries higher risk due to the lack of a track record, minimal brand recognition, and untested operational and support systems, which could impact your potential for success.

Potential Mitigations

  • Your attorney should help you perform extensive due diligence on the backgrounds of the management team, focusing on their prior success with franchise systems.
  • An accountant must carefully vet the franchisor's financial statements to ensure it is adequately capitalized to support its initial growth phase.
  • A business advisor can assist in evaluating the core business model's viability in the absence of a long performance history.
Citations: Items 1, 20, 21

Possible Fad Business

Medium Risk

Explanation

The business operates in the competitive and trend-driven boutique fitness market. While pilates is well-established, the specific “athletic reformer pilates” concept is newer and its long-term consumer demand is unproven. There is a risk that the business could be part of a short-term trend, potentially leaving you with a struggling business after initial consumer interest fades, while your long-term contractual obligations remain.

Potential Mitigations

  • Engage a business advisor to conduct independent market research on the long-term viability of boutique reformer pilates studios versus broader fitness trends.
  • Question the franchisor on their long-term plans for innovation and brand evolution to stay relevant in a competitive market.
  • Your financial advisor should help you model a conservative, long-term financial plan that accounts for potential shifts in consumer demand.
Citations: Item 1

Inexperienced Management

Low Risk

Explanation

This risk was not identified in the FDD package. Item 2 indicates that the key executives have significant prior experience in the fitness and franchising industries, primarily through their roles at the parent and affiliate companies, such as F45 Training. While the Vaura brand itself is new, the management team appears to have relevant industry and franchising experience.

Potential Mitigations

  • It is still prudent to have your attorney and business advisor review the management team's history in detail.
  • Contacting franchisees from other brands managed by this team could provide insight into their management style and effectiveness.
  • Your business advisor can help you research the past performance of other companies these executives have led.
Citations: Not applicable

Private Equity Ownership

Medium Risk

Explanation

The ultimate parent company is F45 Training Holdings Inc., a publicly traded entity with a history that involves private equity. This ownership structure can sometimes lead to decisions that prioritize short-term investor returns over the long-term health of franchisees. The significant litigation history of the F45 affiliate, which shares management with Vaura, may reflect a business culture shaped by such pressures, posing a potential risk to you.

Potential Mitigations

  • It's beneficial to have your business advisor research the track record of the parent company with its other franchise brands.
  • Your attorney can help you frame questions for the franchisor regarding its long-term strategic vision versus short-term financial goals.
  • Discussing the influence of the parent company with any current Vaura or F45 franchisees could provide valuable insight.
Citations: Items 1, 3

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified. Item 1 of the FDD discloses the franchisor's immediate parent, Vaura Holdings Incorporated, and its ultimate parent, F45 Training Holdings Inc. The relationship seems transparently disclosed. A failure to disclose a controlling parent can hide financial weakness or other significant risks from a prospective franchisee.

Potential Mitigations

  • Your attorney can conduct a corporate search to confirm the ownership structure disclosed in the FDD is accurate.
  • An accountant's review of the provided financials can help assess if the franchisor is a shell entity dependent on an undisclosed parent.
  • Understanding the full corporate structure is key, and your business advisor can help map out the relationships between all affiliated entities.
Citations: Not applicable

Predecessor History Issues

Low Risk

Explanation

This risk does not appear to be present. FDD Item 1 does not identify any predecessors for Vaura Incorporated, as it is a newly formed entity. The history of its affiliate, F45, is disclosed in Item 3 (Litigation), but F45 is not defined as a predecessor. A predecessor's negative history can be a red flag for inherited systemic problems.

Potential Mitigations

  • Your attorney should always confirm that the definition of 'predecessor' has been correctly applied by the franchisor.
  • A business advisor can assist in researching the history of the brand and its founders, even if no formal predecessor is listed.
  • Discussing the brand's origins with the franchisor can sometimes reveal history that isn't formally disclosed.
Citations: Not applicable

Pattern of Litigation

High Risk

Explanation

While Vaura itself has no litigation history, its affiliate F45, which shares management and owns the intellectual property, has a significant pattern of recent, serious regulatory actions and franchisee litigation. These include consent orders in Washington, Michigan, and California for franchise law violations like making improper earnings claims and illegal sales practices. This history indicates a potentially problematic operating culture within the parent organization, which poses a substantial risk to you.

Potential Mitigations

  • A franchise attorney must carefully review every litigation and regulatory action disclosed in Item 3 to understand the pattern of conduct.
  • You should discuss the implications of this affiliate litigation history with your attorney, as it may reflect on the current management's practices.
  • A business advisor can help assess whether the issues leading to the affiliate's litigation have been systemically addressed.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
6
1
8

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
5
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

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4

Legal & Contract Risks

Total: 16
4
5
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

Unlock Full Risk Analysis

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

5

Territory & Competition Risks

Total: 5
4
1
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
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.

7

Franchisor Support Risks

Total: 4
2
1
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.

8

Operational Control Risks

Total: 12
6
6
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.

9

Term & Exit Risks

Total: 18
9
7
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.

10

Miscellaneous Risks

Total: 2
1
0
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.