FranchiseVerdict
Nutrishop logo
F82/100FDD 2026

Nutrishop — Litigation & Risk

Health & Wellness - Other · FDD Items 3, 4 & 5

Back to overview

Moderate — Review

5 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
5
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
82 / 100
FranchiseVerdict composite
Rating
AVOID
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
11
Government-backed loans issued
Default rate
33.3%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
2 loans
Loans charged off or defaulted
Total loan volume
$1.9M
Avg loan size
$168K
Participating lenders
11

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
3 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
Nevada
State whose law governs disputes — relevant if you're not based there

What drove the 82/100 rating

Risk Score Breakdown

  1. 01MINORDeclining unit count (-2.9% YoY) indicates system contraction and weakening franchisee demand
  2. 02MINORRegulatory violations across three states (Minnesota, Washington, California) for franchise registration and disclosure suggest compliance failures at corporate level
  3. 03HIGHDirector litigation involving mortgage securities and banking licenses raises governance and integrity concerns
  4. 04MEDAverage net income not disclosed despite average revenue of $170,390 — suggests poor profitability or intentional opacity
  5. 05HIGHNo 'Going Concern' disclosure is absent/false, but combined with declining units signals potential financial instability
  6. 06MINORWide investment range ($45.5K–$255.9K) with vague territory definition creates unclear ROI expectations
  7. 07MINORLow franchise fee ($20K) relative to investment range suggests weak brand equity and potential race-to-the-bottom franchisee quality

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.