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D75/100FDD 2026

Onezo — Litigation & Risk

Food & Beverage - Coffee & Tea · 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
75 / 100
FranchiseVerdict composite
Rating
CAUTION
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
2
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
$668K
Avg loan size
$334K
Participating lenders
2

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

What drove the 75/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 unit in system — no proven franchise model scalability or multi-unit validation
  2. 02HIGHGoing Concern status is FALSE — indicates franchisor financial distress or operational instability
  3. 03MINORNo average revenue or net income disclosure (no Item 19) — unable to assess ROI or realistic earnings potential
  4. 04MINORHigh franchise fee ($200,000) relative to system size creates pressure to recruit rather than support
  5. 05MINORWide investment range ($217,600–$451,500) suggests undefined startup costs and financial planning uncertainty
  6. 06MED5-year term is short for franchise model — limited runway to recover $200k+ initial investment
  7. 07MINORSingle unit makes territory protection claim unverifiable and potentially misleading
  8. 08MINORUnknown growth trajectory — no evidence of successful replication or franchisee retention

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.