FranchiseVerdict
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D77/100FDD 2024

Juice It Up! — Litigation & Risk

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

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
77 / 100
FranchiseVerdict composite
Rating
CAUTION
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
87
Government-backed loans issued
Default rate
29.6%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
21 loans
Loans charged off or defaulted
Total loan volume
$17.4M
Avg loan size
$200K
Participating lenders
32

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
California
State whose law governs disputes — relevant if you're not based there

What drove the 77/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 (Average Net Income) disclosed — inability to assess actual profitability against $236k-$632k investment
  2. 02MINORSlow unit growth (6.4% YoY) with only 84 units suggests weak system momentum and saturated or struggling market
  3. 03HIGHLitigation history involving breach of contract and fraud allegations (2012 settlement) raises governance and partner reliability concerns
  4. 04MINORUnprotected territory creates direct competition risk from other franchisees and company-owned locations
  5. 05MINORHigh royalty floor ($200/week minimum = $10,400/year) burdens low-revenue locations and reduces breakeven flexibility
  6. 06HIGHGoing Concern flag = False suggests potential financial instability or covenant violations at corporate level

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.