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B65/100FDD 2024

Village Juice & Kitchen — 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
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
North Carolina
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MEDSystem contracting sharply: 6 units with -20% YoY decline indicates accelerating franchisee departures or closures
  2. 02MINORNo financial transparency: Franchisor refuses to disclose average unit revenue or net income (absent Item 19), preventing ROI validation
  3. 03MEDHigh capital requirement relative to system size: $491k-$970k investment in a 6-unit system suggests limited economies of scale and franchisor overhead burden on franchisees
  4. 04MEDRapid payback timeline unlikely: 7% royalty + high COGS for juice/prepared foods + undisclosed labor costs in small 6-unit system creates profitability risk
  5. 05MINORInadequate franchisee base for validation: Only 6 units makes it nearly impossible to find diverse references or identify systemic issues

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.