AStrongest tier75/100FDD 2026
Jamba: Litigation & Risk
Quick-Service Restaurants · FDD Items 3, 4 & 5
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)
- None
- Franchisor or officer bankruptcy
- Verdict score
- 75 / 100
- FranchiseVerdict composite · higher is better
- Rating
- A
- A / B / C / D / F verdict grade
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Charge-off rate is the share of loans that were charged off or settled for less than the full balance.
- Total 7(a) loans
- 28
- Government-backed loans issued
- Charge-off rate
- 3.6%
- vs 16% franchise average
- 5-yr charge-off rate
- 100.0%
- Defaults
- 1 loans
- Loans charged off or defaulted
- Total loan volume
- $17.8M
- Avg loan size
- $636K
- Participating lenders
- 17
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
- Not waived
- 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
- GA
- State whose law governs disputes. Relevant if you're not based there
Extracted from FDD Item 3
Litigation Detail
3 case reference(s): 0 pending, 9 settled.
What drove the 75/100 verdict
Risk Score Breakdown
- 01MEDUnit count declined 2.3% YoY (710 units) — system shrinkage indicates market saturation or unit underperformance
- 02MINORNo Item 19 (Average Net Income) disclosure — inability to assess actual profitability despite $674,979 avg revenue
- 03MINORHigh initial investment range ($249k–$1.8M) with 6% royalty creates significant breakeven threshold; unclear if average franchisees achieve positive ROI
- 04HIGHMultiple litigation settlements across parent company affiliates (Arby's/Dunkin'/Jimmy John's) suggest systemic compliance issues with labor practices and data security
- 05MED20-year term is lengthy; limited exit flexibility if unit underperforms or system continues contracting
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.