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B63/100FDD 2025

BNT Bubbl N Tea — 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
63 / 100
FranchiseVerdict composite
Rating
MODERATE
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
Oregon
State whose law governs disputes — relevant if you're not based there

What drove the 63/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 unit in system with unknown growth trajectory indicates severely underdeveloped franchise model with no proven replicability
  2. 02HIGHGoing Concern = False suggests the franchisor itself may have financial stability issues or is a startup entity
  3. 03MINORHigh initial investment range ($275K-$426K) against single unit comparable creates unknown ROI risk and scaling uncertainty
  4. 04MINORRoyalty structure floor of $1,200/month ($14,400 annually) represents 1.8% of average revenue, but breakeven risk unclear for underperforming locations
  5. 05HIGHNo disclosed litigation may indicate insufficient franchise history to generate complaints rather than clean track record
  6. 06MEDAverage net income of $544K appears exceptional; wide gap between gross ($786K) and net suggests either highly efficient operations or incomplete cost disclosure

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.