![Ten Thousand logo](https://cdn.brandfetch.io/10000coffeeusa.com/w/128/h/128/fallback/lettermark?c=<img src="https://cdn.brandfetch.io/domain/apple.com?c=1idsvcTjLv919Ax0E2s" alt="Logo by Brandfetch" />){kind=small}
B65/100FDD 2025
Ten Thousand — Litigation & Risk
Food & Beverage - Coffee & Tea · 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
65 / 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
New Jersey
State whose law governs disputes — relevant if you're not based there
What drove the 65/100 rating
Risk Score Breakdown
- 01MINOROnly 3 franchised units with unknown growth trajectory suggests minimal system validation and high concentration risk
- 02MEDNet income not disclosed in Item 19 — cannot assess actual profitability despite $811K average revenue claim
- 03MINORWide investment range ($385K–$971K) indicates high variance in startup costs and unclear capital requirements
- 04HIGHGoing Concern flagged as False — potential financial instability or unclear franchisor viability
- 05MINORRoyalty escalation (3% to 4% Year 2+) reduces franchisee margins during critical growth phase
- 06MINORExtremely small unit count makes average revenue statistics unreliable and non-predictive
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.