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D72/100FDD 2025
Auntea Jenny — Litigation & Risk
Food & Beverage - Coffee & Tea · 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
72 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Not required
You retain the right to sue in court
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 72/100 rating
Risk Score Breakdown
- 01MINORZero operating franchise units with unknown growth trajectory indicates pre-revenue or failed system launch
- 02HIGHGoing concern status is FALSE, suggesting potential financial viability issues at franchisor level
- 03MINORRoyalty rate doubles from 1% to 6% post-December 2026, creating sudden cash flow pressure on franchisees
- 04MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI assessment and indicates lack of franchisee performance data
- 05MEDHigh initial investment ($285k-$596k) with no disclosed unit economics creates elevated financial risk
- 06MINOR5-year term is relatively short and may indicate franchisor uncertainty or franchisee protection concerns
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.