F80/100FDD 2022
Mountain Man Nut & Fruit Co. — 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
80 / 100
FranchiseVerdict composite
Rating
AVOID
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
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
No
Franchisor can match any purchase offer when you try to sell
Governing law
Colorado
State whose law governs disputes — relevant if you're not based there
What drove the 80/100 rating
Risk Score Breakdown
- 01MEDUnit count declined 17.8% YoY (74 units) — indicates system contraction and potential franchisee struggles
- 02MINORNo average revenue or net income disclosure (Item 19) — impossible to validate ROI claims or profitability
- 03HIGH'Going Concern' status is False — suggests franchisor may have financial viability concerns or accounting irregularities
- 04MINORLow initial investment ($15,360–$16,100) relative to $7,500 franchise fee (48.8% of total) — unusually high fee burden for low-cost model
- 05MINOR3-year term is short — suggests high turnover risk or franchisor unwilling to commit long-term
- 06MED0% royalty model creates revenue dependency on product markups — potential conflict of interest and undisclosed profitability pressure
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.