FranchiseVerdict
Green Leaf’s Beyond Great Salads / Bananas Smoothies & Frozen Yogurt logo
B61/100FDD 2024

Green Leaf’s Beyond Great Salads / Bananas Smoothies & Frozen Yogurt — Litigation & Risk

Food & Beverage - Quick Service · FDD Items 3, 4 & 5

Back to overview

Elevated Risk

9 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
9
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
61 / 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
23
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
Not required
You retain the right to sue in court
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
New Jersey
State whose law governs disputes — relevant if you're not based there

What drove the 61/100 rating

Risk Score Breakdown

  1. 01MINORUnit count collapsed 12.5% YoY (23 units total) indicating severe system contraction and franchisee attrition
  2. 02HIGHGoing Concern status is FALSE — franchisor may lack financial stability to support franchise operations
  3. 03HIGHMultiple litigation patterns: three unpaid royalty actions against franchisees, four legacy rent judgments, and American Dream Mall lease dispute suggest systemic payment/compliance issues
  4. 04MINORNet Income deliberately withheld from Item 19 — inability or unwillingness to disclose profitability is major transparency red flag
  5. 05MINORHigh unit failure rate implies franchisees are struggling to achieve the $885,992 average revenue figure claimed
  6. 06MINORTrademark infringement lawsuit against franchisor raises intellectual property vulnerability concerns
  7. 07MED5% royalty on undisclosed net margins creates unknown true cost burden

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.