![Fruitfull Snacks logo](https://cdn.brandfetch.io/happyandhealthy.com/w/128/h/128/fallback/lettermark?c=<img src="https://cdn.brandfetch.io/domain/apple.com?c=1idsvcTjLv919Ax0E2s" alt="Logo by Brandfetch" />){kind=small}
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
62 / 100
FranchiseVerdict composite
Rating
MODERATE
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
—
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
Florida
State whose law governs disputes — relevant if you're not based there
What drove the 62/100 rating
Risk Score Breakdown
- 01MEDUnit count declined 34.8% YoY (16 units), indicating system collapse or severe franchisee dissatisfaction
- 02MINORNo average revenue or net income disclosure (Item 19) prevents informed ROI assessment despite $90k-$217k investment requirement
- 03HIGHRecent litigation with $350k settlement suggests franchisor-franchisee conflict and potential agreement enforcement issues
- 04MINORNo protected territory creates direct competition risk between franchisees and potential cannibalization
- 05MINORRoyalty-free model may indicate franchisor financial instability or inability to extract sustainable economics
- 06MINOR5-year term is shorter than industry standard, limiting franchisee amortization period and exit planning
- 07MINOR$25,000 franchise fee with $90k-$217k total investment suggests high ancillary costs with unclear breakdown
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.