FranchiseVerdict
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B59/100FDD 2025

VARA Juice Restaurant — Litigation & Risk

Food & Beverage - Full Service · 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
Michigan
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 despite $646,862 average revenue claim — unable to verify profitability or unit-level economics
  2. 02HIGHGoing Concern = False indicates potential financial instability at franchisor level, raising sustainability questions
  3. 03MINORAggressive unit growth (125% YoY) from only 12 units suggests early-stage system with unproven scalability and operational controls
  4. 04MEDHigh investment range ($236K-$635K) paired with undisclosed net income creates uncertainty about ROI timeline and break-even point
  5. 05MINORMinimum royalty of $350/month ($4,200/year) on potential low-revenue locations may pressure unit economics
  6. 06HIGHNo litigation disclosure in growing franchise system is statistically unusual and warrants verification

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.