A41/100FDD 2025
Beyond Juicery + Eatery — Litigation & Risk
Food & Beverage - Full Service · FDD Items 3, 4 & 5
Moderate — Review
1 case disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
41 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.
Total 7(a) loans
13
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$4.0M
Avg loan size
$307K
Participating lenders
4
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
3 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
Michigan
State whose law governs disputes — relevant if you're not based there
What drove the 41/100 rating
Risk Score Breakdown
- 01MEDNo Item 19 (average unit economics) disclosed — impossible to validate the $858k average revenue claim or actual profitability
- 02MINORMinimal system growth of 4.8% YoY with only 47 units suggests market saturation or operational challenges in a competitive QSR segment
- 03HIGHActive litigation (April 2025) against former franchisee indicates enforcement disputes and potential covenant violations — suggests franchisor-franchisee friction
- 04MED6% royalty on gross sales (not net) combined with undisclosed net income creates cash flow risk; franchisees pay royalties even during unprofitable periods
- 05MINORHigh initial investment ($366k–$497k) relative to system size and growth rate increases franchisee exposure if the brand stalls
- 06MINORJuice/smoothie category has high competition from established players (Smoothie King, Jamba Juice) and local vendors
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.