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D75/100FDD 2025

Bevaris Alliance — Litigation & Risk

Food & Beverage - Coffee & Tea · 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
75 / 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
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 75/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern Warning: Franchisor flagged as unable to continue operations, indicating severe financial distress or viability issues
  2. 02MINORExtremely Small System: Only 4 units operating raises questions about scalability, support infrastructure, and franchisor sustainability
  3. 03MEDNo Financial Transparency: Average revenue and net income not disclosed prevents ROI validation and makes due diligence impossible
  4. 04MINORUnprotected Territory: No territorial protection exposes franchisees to direct competition from other franchisees or company-owned locations
  5. 05MINORHigh Royalty Rate: 10% of gross sales (not net profit) is aggressive given lack of proven revenue data and tiny support system
  6. 06MINORMinimal Franchise Fee ($25k) with Wide Investment Range ($82-502k): Unclear what drives 6x cost variance; suggests inconsistent setup or hidden costs
  7. 07MEDUnknown Growth Trajectory: 4 units with no disclosed growth metrics indicates stagnation or inability to attract new franchisees
  8. 08MINOR5-Year Term is Short: Insufficient time to recover investment and reach profitability in most franchise models

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.