FranchiseVerdict
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B59/100FDD 2025

Meet Fresh — Litigation & Risk

Food & Beverage - Ice Cream & Desserts · FDD Items 3, 4 & 5

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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)
—
Franchisor or officer bankruptcy
Overall risk score
59 / 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
1
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$408K
Avg loan size
$408K
Participating lenders
1

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
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 59/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 financial performance disclosure (average unit volume and net income absent) — impossible to validate ROI claims
  2. 02MINORUnprotected territory creates direct competition risk; franchisee at 38-unit system has no exclusivity safeguards
  3. 03MINORHigh initial investment ($507.5K–$795K) paired with 10% royalty rate with no published profitability benchmarks creates acute payback uncertainty
  4. 04MEDModest unit growth (15.4% YoY, only 5 net new units) suggests limited brand momentum and franchisee recruitment difficulty
  5. 05MEDLow franchise fee ($20K) relative to total investment may indicate weak franchisor enforcement capability or limited pre-opening support
  6. 06MINOR10-year term is longer than industry standard (5–7 years typical), locking franchisee into relationship with unproven economics

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.