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B59/100FDD 2025

Snowfruit — Litigation & Risk

Retail · 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
59 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

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

What drove the 59/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 (Average Unit Volume) disclosed — inability to assess profitability and ROI
  2. 02HIGHGoing Concern status is FALSE — indicates potential financial instability or restructuring
  3. 03MINORWide royalty range (5-20%) with no clarity on what drives the variance — cost unpredictability
  4. 04MINORTerritory not protected — direct competition from other franchisees in same market
  5. 05MINORShort 2-year term — high renewal risk and lack of long-term security
  6. 06MINORHigh initial investment variance ($23,977-$170,325) suggests inconsistent unit economics
  7. 07MINOR12.0% YoY unit growth is moderate but concerning given lack of financial transparency

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.