A47/100FDD 2026
everbowl — Litigation & Risk
Food & Beverage - Juice & Smoothies · FDD Items 3, 4 & 5
Moderate — Review
2 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
47 / 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
28
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$5.2M
Avg loan size
$187K
Participating lenders
9
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
What drove the 47/100 rating
Risk Score Breakdown
- 01HIGHActive litigation between franchisor and former franchisees involving breach of contract, unauthorized operations, and alleged franchise law violations creates legal and reputational risk
- 02MINORNo average net income disclosure prevents accurate ROI calculation; with $208k-$391k investment and $469k average revenue, profitability margins are unclear
- 03MINORUnprotected territory allows franchisor to open competing units nearby, directly cannibalizing franchisee revenue and limiting growth potential
- 04MINOR15.9% YoY unit growth is modest for a developing chain; suggests market saturation concerns or franchisee dissatisfaction in mature regions
- 05MINOR6% royalty on gross (not net) sales creates cash flow pressure, especially if net margins are thin—franchisees pay fees before profitability is achieved
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.