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A51/100FDD 2025

B Nutritious — Litigation & Risk

Food & Beverage - Full Service · FDD Items 3, 4 & 5

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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
51 / 100
FranchiseVerdict composite
Rating
STRONG
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
Nevada
State whose law governs disputes — relevant if you're not based there

What drove the 51/100 rating

Risk Score Breakdown

  1. 01MINOROnly 2 units in entire system indicates minimal scale, making it difficult to validate unit economics or identify proven replicable model
  2. 02MEDNo disclosed growth trajectory for 2-unit system raises questions about franchisee demand, market viability, and franchisor's ability to support expansion
  3. 03MEDHigh investment-to-unit ratio ($248K-$450K) with only 2 operating locations suggests unproven ROI and limited comparable performance data
  4. 04MINORInvestment range spread of $202,600 (81% variance) indicates unclear or highly variable startup costs with potential hidden expenses
  5. 05MINORFranchise fee of $49,500 represents 20% of minimum investment—relatively high upfront cost for unproven 2-unit brand

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.