FranchiseVerdict
NÉKTƏR JUICE BAR logo
A49/100FDD 2024

Néktər Juice Bar — 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
49 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID

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

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
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 49/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 financial disclosure (average revenue and net income not disclosed) — impossible to validate ROI claims
  2. 02MEDHigh initial investment range ($246k–$641k) with no disclosed average unit volumes to justify cost
  3. 03MINORModerate unit growth (11.7% YoY) is positive but modest for a 193-unit chain — suggests market saturation or slower franchisee recruitment
  4. 04HIGHLitigation history shows franchisor pursuing former franchisee for breach and abandonment — signals potential franchisee-franchisor disputes or operator quality issues
  5. 05MINOR6% royalty on gross sales (not net profit) creates cash flow pressure, especially if margins are thin in juice/smoothie category
  6. 06MINORProtected territory undefined — scope of exclusivity unclear, limiting competitive advantage

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.