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F79/100FDD 2025
Planet Smoothie — Litigation & Risk
Food & Beverage - Quick Service · FDD Items 3, 4 & 5
Elevated Risk
12 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
12
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
79 / 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
100
Government-backed loans issued
Default rate
26.9%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
21 loans
Loans charged off or defaulted
Total loan volume
$19.0M
Avg loan size
$190K
Participating lenders
45
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
Arizona
State whose law governs disputes — relevant if you're not based there
What drove the 79/100 rating
Risk Score Breakdown
- 01MINORDeclining unit count (-2.5% YoY) suggests system contraction and potential market saturation or performance issues
- 02HIGHSignificant litigation history involving franchisor, predecessors, and affiliates with claims of breach of contract, misrepresentation, fraud, and franchise act violations—pattern of legal disputes is concerning
- 03MEDNo average net income disclosed in FDD—inability or unwillingness to provide profitability data is a major red flag for franchisee earnings potential
- 04MINORHigh investment range ($84,150–$478,500) with low franchise fee ($25,000) suggests majority costs are in startup/build-out; unclear ROI timeline
- 05MINORNo protected territory creates direct competition risk; franchisees could face cannibalization from new units in same geographic area
- 06MEDRoyalty structure (5% + $10/week surcharge) on disclosed $280,048 average revenue generates approximately $14,402–$16,002 annual franchisor revenue per unit—sustainability concern if units continue declining
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.