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B58/100FDD 2026

Jamba — Litigation & Risk

Food & Beverage - Juice & Smoothies · FDD Items 3, 4 & 5

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Moderate — Review

4 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
4
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
58 / 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
28
Government-backed loans issued
Default rate
12.5%
vs <3% typical · system-wide
5-yr default 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
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
Georgia
State whose law governs disputes — relevant if you're not based there

What drove the 58/100 rating

Risk Score Breakdown

  1. 01MEDUnit count declined 2.3% YoY (710 units) — system shrinkage indicates market saturation or unit underperformance
  2. 02MINORNo Item 19 (Average Net Income) disclosure — inability to assess actual profitability despite $674,979 avg revenue
  3. 03MINORHigh initial investment range ($249k–$1.8M) with 6% royalty creates significant breakeven threshold; unclear if average franchisees achieve positive ROI
  4. 04HIGHMultiple litigation settlements across parent company affiliates (Arby's/Dunkin'/Jimmy John's) suggest systemic compliance issues with labor practices and data security
  5. 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.