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B65/100FDD 2025

Gelatissimo — Litigation & Risk

Food & Beverage - Ice Cream & Desserts · FDD Items 3, 4 & 5

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Lower Risk

No litigation cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
65 / 100
FranchiseVerdict composite
Rating
MODERATE
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
Delaware
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status indicates franchisor financial distress or operational viability concerns
  2. 02MEDOnly 5 units in system with no disclosed average revenue/net income makes ROI projections impossible
  3. 03MINORExplosive 300% YoY unit growth from ~1-2 units is unsustainable and suggests either new concept or prior collapse
  4. 04MINORNo protected territory creates direct competition risk between franchisees in same market
  5. 05MINORWide investment range ($372,500–$885,500) with no clear breakdown suggests inconsistent unit economics
  6. 06MINORHigh franchise fee ($35,000) relative to tiny system size and unproven unit economics
  7. 07MINORNo Item 19 financial performance data prevents validation of franchisor's revenue/profitability claims

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.