F92/100FDD 2025
Sub Zero Nitrogen Ice Cream — Litigation & Risk
Food & Beverage - Ice Cream & Desserts · FDD Items 3, 4 & 5
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
92 / 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
16
Government-backed loans issued
Default rate
56.2%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
9 loans
Loans charged off or defaulted
Total loan volume
$2.9M
Avg loan size
$181K
Participating lenders
13
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
Utah
State whose law governs disputes — relevant if you're not based there
What drove the 92/100 rating
Risk Score Breakdown
- 01MEDNet income not disclosed in FDD Item 19 — unable to validate profitability claims or actual ROI
- 02MEDSlow unit growth of only 5.6% YoY with 40 units suggests limited market traction or saturation concerns
- 03MEDHigh initial investment ($216.8K–$356K) relative to disclosed average revenue ($228K) creates thin margin for error and extended payback period
- 04MED6% royalty on gross sales with no disclosed net income makes it difficult to model true franchise profitability
- 05MEDNitrogen ice cream is a novelty category with limited consumer awareness — higher customer acquisition costs likely
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.