FranchiseVerdict
Reborn Coffee logo
B65/100FDD 2025

Reborn Coffee — Litigation & Risk

Food & Beverage - Full Service · FDD Items 3, 4 & 5

Back to overview

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
65 / 100
FranchiseVerdict composite
Rating
MODERATE
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
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 65/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 (Average Unit Volume) disclosed — impossible to assess profitability or ROI against $217.5K–$595K investment
  2. 02MEDOnly 10 units system-wide indicates minimal scale, limited brand recognition, and high operational risk
  3. 03MINORUnprotected territory creates direct competition risk; franchisor can saturate your market
  4. 04MINORWide investment range ($377.5K spread) suggests inconsistent unit economics or lack of standardization
  5. 05MEDNo disclosed unit growth metrics; unclear if system is expanding, stagnant, or contracting
  6. 06MINORLow royalty rate (3%) may indicate franchisor underinvestment in support, training, or marketing
  7. 07MED10-year term with no exit clarity; limited franchisee acquisition data suggests poor exit market

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.