FranchiseVerdict
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B57/100FDD 2025

Great Harvest — Litigation & Risk

Food & Beverage - Bakery · FDD Items 3, 4 & 5

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Moderate — Review

3 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
3
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
57 / 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
217
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
Montana
State whose law governs disputes — relevant if you're not based there

What drove the 57/100 rating

Risk Score Breakdown

  1. 01MINORDeclining unit count (-0.6% YoY) indicates system contraction despite reasonable average revenues
  2. 02MEDNet income not disclosed in Item 19 prevents accurate ROI calculation on $298k-$980k investment
  3. 03HIGHMultiple active litigations (breach of contract, trademark infringement) suggest franchisor enforcement issues and franchisee disputes
  4. 04MINORWide investment range ($681k spread) creates uncertainty about startup costs and unit economics
  5. 05MINOR5% royalty on $948k average revenue yields only $47,405 annually, making profitability dependent on cost control
  6. 06HIGHNo going concern statement absent, which may indicate marginal franchisor financial health
  7. 07MINORBakery-café model faces intense competition and requires operational excellence in food production and customer service

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.