D75/100FDD 2025
Freshly Go — Litigation & Risk
Food & Beverage - Full Service · FDD Items 3, 4 & 5
Moderate — Review
5 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
5
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
1
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
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
California
State whose law governs disputes — relevant if you're not based there
What drove the 75/100 rating
Risk Score Breakdown
- 01HIGHGoing concern status is FALSE — franchisor may be financially unstable or operationally distressed
- 02MEDZero disclosed operating units with unknown growth trajectory suggests system is either pre-revenue, collapsing, or misrepresented
- 03HIGHFive litigation cases in short history indicate employment disputes, termination conflicts, and royalty/commission disagreements — pattern of franchisor-franchisee friction
- 04MINORNo average revenue or net income disclosure (no Item 19) prevents validation of profit claims and ROI assessment
- 05MINORWide royalty range (5-20% of gross sales) suggests inconsistent or negotiated terms — unclear what drives the variance
- 06MINORNo protected territory means franchisees face direct competition from other Freshly Go locations and potential company-owned units
- 07MINORFive-year term is relatively short; combined with no territory protection, creates instability and renewal uncertainty
- 08MINORExtremely low franchise fee ($5,000) may indicate franchisor lacks capital or confidence in system viability, OR lures under-capitalized franchisees
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.