D69/100FDD 2025
Açai Republic — Litigation & Risk
Food & Beverage - Juice & Smoothies · FDD Items 3, 4 & 5
Lower Risk
No litigation cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
69 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
California
State whose law governs disputes — relevant if you're not based there
What drove the 69/100 rating
Risk Score Breakdown
- 01MINORSystem collapsed 50% YoY (29 units down from ~58) — severe contraction indicates fundamental business model failure
- 02MINORNo Item 19 financial disclosure — cannot verify average unit economics, profitability, or break-even timeline
- 03HIGHGoing concern status is FALSE — franchisor may lack financial stability to support franchisees or honor obligations
- 04MINORHigh initial investment ($178k-$505k) paired with unknown ROI creates extreme downside risk
- 05MED5% royalty on undisclosed revenues offers no transparency on typical franchisee earnings potential
- 06MEDRapid unit decline suggests widespread franchisee dissatisfaction, closure, or non-renewal
Severity inferred from FDD text — not a regulatory or legal classification
Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.