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B65/100FDD 2025

Sidewalk Juice — 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
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. 01MINOROnly 6 units with unknown growth trajectory suggests minimal system traction and expansion stagnation
  2. 02MINORNo average net income disclosure (Item 19) prevents ROI validation; combined with $692K avg revenue, profitability is opaque
  3. 03HIGHFebruary 2019 litigation involving franchisor's licensor and franchisees selling unregistered licenses indicates regulatory compliance issues and potential systemic control problems
  4. 04MEDHigh investment range ceiling ($2.1M) against small unit base and undisclosed profitability creates unfavorable risk-reward
  5. 05MINOR6% royalty on gross receipts with no net income data means franchisees may be paying royalties on unprofitable locations
  6. 06HIGHGoing Concern status is FALSE — unclear if this means no going concern issues or data unavailability, but combined with other factors suggests instability

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.