D75/100FDD 2025
Clean Juice — Litigation & Risk
Food & Beverage - Juice & Smoothies · FDD Items 3, 4 & 5
Moderate — Review
4 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
4
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
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
75
Government-backed loans issued
Default rate
14.3%
vs <3% typical · system-wide
5-yr default rate
15.4%
Defaults
7 loans
Loans charged off or defaulted
Total loan volume
$22.6M
Avg loan size
$301K
Participating lenders
31
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
Texas
State whose law governs disputes — relevant if you're not based there
What drove the 75/100 rating
Risk Score Breakdown
- 01MINORCEO has 2012 SEC final judgment for securities law violations—indicates potential pattern of misrepresentation at corporate level
- 02HIGHPending litigation (CHNC I, LLC) specifically alleges inaccurate financial representations and failure to update FDD disclosures—core franchisor duty violation
- 03MED69 units with unknown growth trajectory suggests stagnation or contraction; no Item 19 financials disclosed prevents ROI verification
- 04MINORMultiple settled termination disputes indicate franchisor-franchisee relationship problems and potential operational or support deficiencies
- 05MEDHigh initial investment ($176.5K–$419K) combined with 6% royalty on undisclosed revenue creates profitability uncertainty
- 06HIGHGoing concern status raises questions about franchisor's financial stability and ability to support franchisees long-term
- 07MEDNo average revenue or net income disclosed despite 69 units operating—suggests either poor performance or deliberate withholding of Item 19 data
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.