D75/100FDD 2025
Monster Shakes — Litigation & Risk
Food & Beverage - Full Service · 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)
—
Franchisor or officer bankruptcy
Overall risk score
75 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID
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
Wyoming
State whose law governs disputes — relevant if you're not based there
What drove the 75/100 rating
Risk Score Breakdown
- 01MINOROnly 2 existing units indicates an extremely young/unproven system with no meaningful track record
- 02HIGHGoing Concern status is FALSE — suggests franchisor may have financial stability issues or be pre-revenue
- 03MEDNo Item 19 (average unit economics) disclosed — impossible to validate ROI claims or profitability
- 04MINORWide investment range ($148K-$402K) with no revenue/net income data makes risk assessment impossible
- 05MINORHigh initial franchise fee ($35K) relative to system size raises question of revenue model dependency on recruiting rather than franchisee success
- 06MEDNo disclosed unit growth trajectory — cannot assess whether the 2 units are stable, growing, or struggling
- 07MINOR6% royalty + unknown other fees could create cash flow pressure if average unit economics are weak
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.