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D70/100FDD 2024

Fruitfull — Litigation & Risk

Other · FDD Items 3, 4 & 5

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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
70 / 100
FranchiseVerdict composite
Rating
CAUTION
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
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 70/100 rating

Risk Score Breakdown

  1. 01MEDSevere unit decline of 34.8% YoY (16 units remaining) indicates systemic failure or market rejection
  2. 02HIGHGoing Concern status is FALSE — franchisor may lack financial stability to support franchisees
  3. 03MEDNo financial transparency: average revenue and net income not disclosed in FDD Item 19, preventing ROI validation
  4. 04HIGHLitigation history with $350K settlement suggests franchisee-franchisor conflict and enforcement disputes
  5. 05MINORUnknown royalty structure creates hidden cost uncertainty and cash flow unpredictability
  6. 06MINORNo territory protection leaves franchisees vulnerable to brand cannibalization and internal competition
  7. 07MINOR5-year term with $25K franchise fee offers minimal runway for recouping investment given declining unit economics

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.