Everbowl
Food and Beverage
Founded 201691 locationsCompany Profile
Year Founded:2016
Everbowl Franchise Cost
| Franchise Fee: | $39,750Key Metric |
| Total Investment: | $189,000 - $371,000Key Metric |
| Liquid Capital: | $47,500 |
| Royalty Fee: | 6% of gross sales |
| Marketing Fee: | 2% of gross sales |
Quick ROI Calculator
Based on Everbowl's actual financial data
Outlet Counts by Year
Historical outlet data extracted from FDD documents
Total US Locations:91
Scale relative to 1,000 locations
Franchised Units:82
Corporate Units:9
Additional Information
Processing Franchise Details
Our AI is extracting detailed information from franchise documents.
Company history, executive team profiles, and legal disclosures will appear here once document processing is complete.
Search Interests & Trends
Search Volume Data and Trend Analysis
Search Interest & Trends
No Trends Data Available
Trend analysis data for Everbowl is being collected. Check back soon for insights.
AI-Powered Due Diligence Analysis
Our advanced AI analyzes Franchise Disclosure Documents (FDDs) to identify potential risks and opportunities across 10 critical categories.
14
High Risk
Critical items
38% of total
20
Medium Risk
Monitor closely
54% of total
3
Low Risk
Manageable items
8% of total
37
Total Items
Factors analyzed
10 categories
6.49
Overall Score
Low RiskHigh Risk
010
Franchisor Stability Risks
3 risks identified
1
2
Limited Operating History as Franchisor
Medium
Explanation:
- Everbowl Franchise, LLC has only been franchising since December 2019, representing a relatively short track record in franchising operations.
- While affiliates have operated Everbowl stores since 2016, the franchisor itself lacks direct operational experience.
- This limited history may present challenges in providing adequate support and guidance to franchisees, potentially impacting franchisee success.
Potential Mitigations:
- Thoroughly research the management team's experience and expertise in franchising and the food and beverage industry.
- Contact existing franchisees to assess their satisfaction with the franchisor's support and training programs.
- Carefully evaluate the franchisor's financial performance and projections to gauge their stability and potential for long-term success.
FDD Citations:
- Item 1: "We have been selling franchises for everbowl Stores since December 2019."
- Item 1: "While our affiliates have owned and operated everbowl Stores since 2016, we have never owned or operated everbowl Stores."
Dependence on Affiliated Suppliers
Medium
Explanation:
- Franchisees are required to purchase custom furniture and fixtures exclusively from WeBuild Stuff, LLC, branded merchandise and operation kits from Unevolve Products, LLC, and gift card services from Everbowl GC, LLC, all affiliates of the franchisor.
- This dependence on affiliated suppliers limits franchisees' flexibility in sourcing goods and services and may expose them to potentially higher prices or quality issues.
Potential Mitigations:
- Carefully review the pricing and quality of goods and services offered by affiliated suppliers and compare them to market rates.
- Inquire about the franchisor's policies regarding disputes with affiliated suppliers.
- Negotiate for greater flexibility in sourcing certain goods and services, if possible.
FDD Citations:
- Item 1: Mentions WeBuild Stuff, LLC as the exclusive manufacturer of furniture and fixtures.
- Item 1: Mentions Unevolve Products, LLC as the exclusive supplier of certain branded merchandise and an approved supplier of operation kits.
- Item 1: Mentions Everbowl GC, LLC as the handler of all gift card transactions.
Significant Franchisee Turnover (Potential)
High
Explanation:
- Item 20, Table 3 shows a significant decrease in the number of franchisee-owned outlets in California from 25 in 2023 to 13 in 2024. Combined with the increase in "Reacquired by Franchisor" from 1 to 15 in California during the same period, this suggests a high rate of franchise terminations or non-renewals.
- This high turnover rate raises concerns about the profitability and sustainability of the franchise model and could indicate underlying issues with the franchise system.
Potential Mitigations:
- Thoroughly investigate the reasons for the high turnover rate in California, including interviewing former franchisees.
- Analyze the franchisor's financial statements and franchisee performance data to assess the financial viability of the franchise opportunity.
- Seek legal advice to understand the terms of the franchise agreement and the potential risks involved.
FDD Citations:
- Item 20, Table 3: Shows the number of outlets at the start and end of each year, as well as reasons for changes.
Disclosure & Representation Risks
3 risks identified
3
Unclear State Registration Status
Medium
Explanation:
- Exhibit A lists state agencies responsible for franchising but states "We may not yet be registered to sell franchises in any or all of these states." This creates uncertainty about the legal standing of the franchise offering in various jurisdictions.
- Operating in unregistered states could lead to legal challenges, fines, or even franchise termination.
Potential Mitigations:
- Verify Everbowl's registration status in your specific state before signing the agreement. Consult with a franchise attorney to understand the implications of operating in a state where Everbowl isn't registered.
- Request written confirmation from Everbowl regarding their current and future registration status in your target market.
FDD Citations:
- Exhibit A: "We may not yet be registered to sell franchises in any or all of these states."
Vague Real Estate Vendor Fee
Medium
Explanation:
- The Real Estate Vendor Fee is described as "$2,500 to $4,000, depending on the third-party cost we incur." This lacks transparency and could lead to unexpected expenses.
- The open-ended nature of the fee makes it difficult to budget accurately and could create disputes later.
Potential Mitigations:
- Request a detailed breakdown of the Real Estate Vendor Fee and the factors influencing its cost. Get a clear understanding of what services are included and what third-party costs are anticipated.
- Negotiate a fixed fee or a more precise range to avoid surprises.
FDD Citations:
- Exhibit B, Item 6.b: "Real Estate Vendor Fee (Section 2.2): $2,500 to $4,000, depending on the third-party cost we incur."
Subjectivity in Non-Compliance Charge
Medium
Explanation:
- The Non-Compliance Charge is an "Increase of either 1 or 4 percentage points to your Royalty Fee rate." The criteria for applying the 1% vs. 4% increase are not clearly defined, leaving room for arbitrary enforcement by the franchisor.
Potential Mitigations:
- Request specific examples of violations that would trigger the 1% and 4% increases. Negotiate clear and objective criteria for assessing the Non-Compliance Charge.
- Consult with a franchise attorney to review the non-compliance clause and ensure it's fair and reasonable.
FDD Citations:
- Exhibit B, Item 6.e: "Non-compliance Charge (Section 4.3): Increase of either 1 or 4 percentage points to your Royalty Fee rate."
Financial & Fee Risks
3 risks identified
2
1
Non-Refundable Initial Investment Costs
High
Explanation:
- Item 7 states that unless otherwise noted, all initial investment costs are non-refundable, except potentially through direct negotiation with suppliers. This creates a significant financial risk as a substantial portion of the investment could be lost if the franchisee is unable to operate the business successfully or decides to terminate the agreement prematurely.
- The FDD explicitly states, "We do not finance any portion of your initial investment," further increasing the burden on the franchisee and the risk associated with the non-refundable nature of the costs.
Potential Mitigations:
- Carefully review all supplier agreements and negotiate refund policies where possible. Document these agreements thoroughly.
- Secure financing from external sources to reduce reliance on personal funds and mitigate the impact of potential losses.
- Conduct thorough due diligence to assess the viability of the business and the likelihood of success before committing funds.
- Consult with a legal professional specializing in franchise agreements to understand the implications of non-refundable costs and explore potential legal recourse in case of unforeseen circumstances.
FDD Citations:
- Item 7: "Unless noted, all amounts reflected in this Item 7 will be non-refundable unless you are able to negotiate a refund with a particular supplier. We do not finance any portion of your initial investment."
Multi-Unit Development Agreement Development Fee Risk
High
Explanation:
- The Multi-Unit Development Agreement requires a substantial upfront development fee ranging from $119,250 to $198,750, depending on the number of units committed (3-5). This large upfront cost presents a significant financial risk, especially considering the non-refundable nature of other initial investment costs.
- While a partial refund is offered upon completion of development obligations, this is contingent on not being in default of any agreement, adding another layer of risk.
Potential Mitigations:
- Thoroughly evaluate the feasibility of developing multiple units within the specified timeframe and assess the associated risks.
- Secure adequate financing to cover the development fee and other initial investment costs without overextending financial resources.
- Consult with a financial advisor to develop a comprehensive financial plan that accounts for the development fee and potential delays or unforeseen expenses.
- Negotiate the terms of the Multi-Unit Development Agreement to potentially reduce the upfront fee or secure more favorable refund terms.
FDD Citations:
- Item 7: "YOUR ESTIMATED INITIAL INVESTMENT – MULTI-UNIT DEVELOPMENT AGREEMENT" section detailing the development fee structure and refund conditions.
Reliance on Affiliate and Franchisee Data for Investment Estimates
Medium
Explanation:
- The FDD states that the estimated initial investment figures are based on the experience of affiliates and existing franchisees. This reliance on potentially biased data introduces a risk that the actual costs may vary significantly, potentially exceeding the estimates and impacting the franchisee's financial stability.
Potential Mitigations:
- Conduct independent research and market analysis to validate the provided estimates and account for potential variations based on local market conditions.
- Consult with existing franchisees to gain insights into their actual investment costs and operational expenses.
- Develop a contingency plan to address potential cost overruns and secure additional funding if necessary.
FDD Citations:
- Item 7: "We relied on our affiliates’ and franchisees’ experience in developing everbowl Stores when preparing the estimates shown in the charts above."
Legal & Contract Risks
7 risks identified
2
3
2
Choice of Law/Forum Selection Clause Restrictions (RI & IL)
Medium
Explanation:
- Rhode Island's Franchise Investment Act voids choice-of-law/forum selection clauses that mandate jurisdiction outside RI for claims under the Act. This could complicate dispute resolution if the franchise agreement specifies a different jurisdiction.
- The Illinois rider mandates Illinois law governs the agreement, except for federal laws. This could create conflict with the main agreement and complicate legal proceedings if another jurisdiction is preferred by the franchisor.
Potential Mitigations:
- Carefully review the franchise agreement to ensure it aligns with RI and IL laws regarding jurisdiction and choice of law.
- Consult with legal counsel specializing in franchise law in RI and IL to understand the implications and potential challenges.
- Negotiate with the franchisor to modify the agreement to address these specific state requirements and avoid future conflicts.
FDD Citations:
- Item 17, State Addenda: "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state...is void..."
- Illinois Rider: "Except for the U.S. Federal Arbitration Act and other federal laws in the U.S., the laws of the State of Illinois will govern this Agreement."
Waiver of Claims Restriction (VA, CA, HI, IL)
Medium
Explanation:
- Several state addenda (VA, CA, HI, IL) prohibit waivers of claims under state franchise laws, including fraud in the inducement. This protects franchisees but could limit the franchisor's ability to enforce certain provisions.
Potential Mitigations:
- Understand the specific provisions of the state franchise laws regarding waivers.
- Ensure all representations by the franchisor are accurate and documented to minimize the risk of fraud in the inducement claims.
- Consult with legal counsel to understand the implications of these restrictions.
FDD Citations:
- Item 17, State Addenda (VA, CA, HI, IL): "No statement...shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement..."
Deferred Fee Requirements (VA, HI)
Low
Explanation:
- Virginia and Hawaii require deferral of initial franchise fees and other initial payments until the franchisor fulfills pre-opening obligations. This impacts the franchisor's cash flow and could create financial strain.
Potential Mitigations:
- Franchisor should have strong financial planning to account for the delayed revenue recognition.
- Clearly define pre-opening obligations in the agreement to avoid disputes and ensure timely payment.
FDD Citations:
- Items 5 & 7, State Addenda (VA, HI): "...requires us to defer payment of the initial franchise fee...until the franchisor has completed its pre-opening obligations..."
Termination Without Cause Restriction (VA)
Medium
Explanation:
- Virginia law restricts termination without reasonable cause, potentially limiting the franchisor's ability to terminate under-performing franchisees.
Potential Mitigations:
- Ensure the franchise agreement clearly defines "reasonable cause" for termination in accordance with Virginia law.
- Establish clear performance standards and include them in the franchise agreement.
- Consult with legal counsel specializing in Virginia franchise law.
FDD Citations:
- Item 17, State Addenda (VA): "Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause."
Surety Bond Requirement (IL)
Low
Explanation:
- Illinois requires a surety bond, which represents a cost for the franchisor and potential liability.
Potential Mitigations:
- Factor the cost of the surety bond into the financial projections.
- Ensure compliance with all bond requirements to avoid potential penalties.
FDD Citations:
- Illinois Rider: "Pursuant to Section 200.505...we have posted a surety bond..."
Disclaimer of Representations Restriction (IL)
High
Explanation:
- The Illinois rider prohibits disclaiming representations made in the FDD, increasing the franchisor's liability for inaccuracies or misrepresentations.
Potential Mitigations:
- Ensure the FDD is thoroughly reviewed by legal counsel and is accurate and complete.
- Maintain meticulous records supporting all representations made in the FDD.
FDD Citations:
- Illinois Rider: "Notwithstanding the foregoing, nothing in any franchise agreement is intended to disclaim the express representations made in the Franchise Disclosure Document."
Conflict Between Franchise Agreement and Riders
High
Explanation:
- Several state riders state they govern in case of conflict with the Franchise Agreement. This creates potential ambiguity and could lead to legal disputes over which document controls specific provisions.
Potential Mitigations:
- Carefully review both the Franchise Agreement and all applicable state riders to identify and reconcile any potential conflicts.
- Negotiate with the franchisor to clarify any ambiguities or inconsistencies between the documents.
- Seek legal counsel to ensure the agreement and riders are consistent and enforceable.
FDD Citations:
- State Riders (CA, HI, IL): "In the event of conflict between the terms of the Franchise Agreement and this Rider, this Rider shall govern such inconsistency."
Territory & Competition Risks
3 risks identified
2
1
No Exclusive Territory
High
Explanation:
- The FDD explicitly states that franchisees are not granted exclusive territories. This means multiple Everbowl franchises can operate in close proximity, potentially leading to market saturation and cannibalization of sales.
- This is particularly concerning given the relatively young age of the franchise system and the rapid expansion plans, increasing the likelihood of oversaturation in certain markets.
Potential Mitigations:
- Thoroughly research the existing and planned Everbowl locations in your target market. Analyze population density, demographics, and competitor landscape to assess the potential for market saturation.
- Discuss your concerns with the franchisor and inquire about their development plans for your area. While they are not obligated to limit development, understanding their strategy can inform your decision.
- Focus on building a strong local presence through targeted marketing and community engagement to differentiate yourself from other franchisees.
FDD Citations:
- Item 12: "You will not receive an exclusive territory. You may face competition from other franchisees..."
- Item 12: "...we and our affiliates will not operate or grant a franchise... within the Development Area so long as you are in full compliance..." (This conditional protection within the Development Area for multi-unit franchisees still presents a risk after the development period ends.)
Competition from Franchisor-Owned Stores and Other Channels
High
Explanation:
- The franchisor and its affiliates reserve the right to operate Everbowl stores, sell products through other channels (including online), and develop other competing brands, even within the vicinity of franchisee locations.
- This creates direct competition for franchisees and could significantly impact their sales and profitability.
Potential Mitigations:
- Carefully review Item 12 of the FDD to fully understand the extent of the franchisor's rights and potential competitive activities.
- Inquire about the franchisor's current and future plans for corporate-owned stores and other distribution channels in your target market.
- Focus on differentiating your franchise through exceptional customer service and local marketing efforts.
FDD Citations:
- Item 12: "We and our affiliates may... operate, anywhere in the world, any business... including the Marks..."
- Item 12: "...sell products under any trademarks (including the Marks) anywhere in the world (including within the vicinity of the Store) and through any distribution method..."
Competition from Other Food and Beverage Businesses
Medium
Explanation:
- The food and beverage industry is highly competitive, with numerous established players and new entrants constantly emerging.
- Everbowl faces competition from other health-focused restaurants, smoothie bars, yogurt shops, and traditional fast-casual restaurants.
Potential Mitigations:
- Conduct a thorough competitive analysis of your local market to identify existing and potential competitors.
- Develop a strong marketing strategy to differentiate your Everbowl franchise and attract customers.
- Focus on providing excellent customer service and creating a positive brand experience.
FDD Citations:
- While not explicitly stated in Item 12, the competitive nature of the food and beverage industry is an inherent risk.
Regulatory & Compliance Risks
3 risks identified
1
2
Mandatory Sourcing from Affiliates Creates Potential Conflicts of Interest and Reduced Bargaining Power
High
Explanation:
- Franchisees are required to purchase numerous essential items, including the store build kit, furniture, fixtures, equipment, operational kits, branded merchandise, and point-of-sale system, exclusively from Everbowl affiliates or designated vendors. This creates a potential conflict of interest as the franchisor profits directly from these sales.
- This mandatory sourcing eliminates franchisees' ability to negotiate better prices or explore alternative suppliers that might offer higher quality or lower costs, impacting profitability.
- The franchisor's control over pricing and supply could lead to inflated costs for franchisees, reducing their profit margins.
Potential Mitigations:
- Carefully analyze the costs of goods and services provided by affiliates and compare them to market rates. Negotiate pricing with the franchisor before signing the agreement.
- Consult with a franchise attorney to understand the implications of mandatory sourcing and explore potential legal avenues for greater flexibility.
- Join a franchisee association to collectively bargain for better pricing and terms with the franchisor.
FDD Citations:
- Item 8: "As of the issuance date of this Disclosure Document, our affiliates are the sole supplier and installer of Store build kit which includes certain interior signage, wallpaper, certain millwork, and related items. We also require the franchisees to purchase the following items from our affiliates or, at our option, from our designated vendors: furniture, fixture, and equipment package...; operations kit...; branded merchandise and employee uniforms...; and the point-of-sale system."
Limited Control Over Suppliers and Product Quality
Medium
Explanation:
- While franchisees can propose alternate suppliers, the franchisor retains absolute approval authority and may charge a fee for evaluating each proposed product/supplier. This process can be time-consuming and costly, discouraging exploration of alternatives.
- The FDD states that the franchisor does not issue specifications or standards to third-party suppliers, raising concerns about quality control and consistency across the franchise system if alternate suppliers are approved.
Potential Mitigations:
- Thoroughly review the franchisor's approval process for alternate suppliers, including associated fees and timelines. Negotiate clearer standards and specifications for product quality.
- Request a list of currently approved alternate suppliers and contact them to understand their experience working with the franchisor.
- Due diligence should include speaking with existing franchisees about their experiences with approved suppliers and the quality of goods and services.
FDD Citations:
- Item 8: "However, if we have designated a supplier for any product or service and you wish to purchase such product or service from an alternate supplier, you or such supplier must submit a written request for our approval and we may charge you a fee (currently estimated to be $1,000 per product per request) for testing such products at laboratories of our choice."
- Item 8: "However, we do not issue specifications or standards to any third-party suppliers."
Risk of Supply Chain Disruptions
Medium
Explanation:
- Reliance on a limited number of designated suppliers, particularly affiliates, increases vulnerability to supply chain disruptions. Any issues with these suppliers, such as production problems, financial difficulties, or logistical challenges, could significantly impact franchisees' ability to operate their businesses.
Potential Mitigations:
- Inquire about the franchisor's contingency plans for supply chain disruptions. Negotiate the right to use alternative suppliers in case of emergencies.
- Explore the possibility of building relationships with backup suppliers in advance, even if they are not officially approved, to mitigate potential disruptions.
- Maintain adequate inventory levels of essential items to buffer against short-term supply chain issues.
FDD Citations:
- Item 8: Implicit risk due to the reliance on designated and affiliate suppliers.
Franchisor Support Risks
3 risks identified
1
2
Limited Post-Opening Support
High
Explanation:
- The FDD states minimal ongoing support beyond access to the system, manuals, marketing fund administration, and refresher training. This lack of continuous field support, business consulting, or performance monitoring could leave franchisees struggling to adapt to market changes or address operational challenges.
- Specifically, the FDD states "We are not required to provide any other service or assistance to you for the continuing operation of the Store." This leaves franchisees vulnerable and dependent on their own resources for problem-solving and business development.
Potential Mitigations:
- Thoroughly review the Operations Manual and understand the scope of provided resources.
- Network with existing franchisees to gauge the level of practical support received.
- Develop a strong internal management team and operational plan to compensate for limited franchisor assistance.
- Negotiate for additional support services in the franchise agreement.
FDD Citations:
- Item 11: "We are not required to provide any other service or assistance to you for the continuing operation of the Store."
- Item 11: "Under the Franchise Agreement, we will provide the following services and assistance to you after the opening of the Store: continued access to our System Standards and Manual… administration of the Marketing Fund… additional or refresher training…"
Site Selection Risk & Cost
Medium
Explanation:
- While the franchisor provides site selection guidelines and conducts evaluations, the ultimate responsibility and cost of finding and securing a suitable location rests with the franchisee. This exposes franchisees to potential financial losses if a chosen site is ultimately rejected or proves unsuccessful.
- The FDD mentions an introduction to a vendor, but doesn't mandate its use, potentially leading to inconsistent site selection practices and increased risk for inexperienced franchisees.
- The franchisor's site approval is based on "minimum criteria," which may not guarantee a profitable location.
Potential Mitigations:
- Engage experienced real estate professionals familiar with the target market.
- Carefully analyze the franchisor's site selection guidelines and conduct independent market research.
- Consider using the recommended vendor for site selection assistance.
- Negotiate a clear understanding of the site approval process and criteria with the franchisor.
FDD Citations:
- Item 11: "You will assume all costs, liabilities, expenses and responsibility for locating, obtaining and developing a site…"
- Item 11: "Our acceptance only indicates that the site meets our minimum criteria for a Store."
- Item 11: "We will introduce you to a vendor who can assist you with site selection, but you are not required to use its services."
Limited Franchisor Advertising Support
Medium
Explanation:
- The FDD states the franchisor has "no obligations to conduct advertising on your behalf" outside of administering the Marketing Fund. This limits the franchisor's direct investment in promoting individual franchisees and their local markets.
- While the Marketing Fund exists, the franchisor has sole discretion over its allocation and spending, potentially prioritizing national campaigns over local needs.
Potential Mitigations:
- Request a detailed breakdown of past Marketing Fund expenditures and planned future campaigns.
- Develop a strong local marketing plan to supplement national efforts.
- Collaborate with other franchisees on regional marketing initiatives.
FDD Citations:
- Item 11: "Except for the administration of the Marketing Fund described below, we have no obligations to conduct advertising on your behalf…"
- Item 11: "We will direct all advertising programs that the Marketing Fund finances and have sole discretion to approve the creative concepts…"
Exit & Transfer Risks
6 risks identified
2
3
1
Restrictive Venue Selection Clause Conflict (Rhode Island)
Medium
Explanation:
- Item 17 mentions a conflict between the Franchise Agreement's venue selection clause and Rhode Island's Franchise Investment Act. The Act voids clauses restricting jurisdiction or venue to locations outside Rhode Island for claims enforceable under the Act.
- This could lead to legal disputes and increased costs if the franchisor attempts to enforce the restrictive clause for Rhode Island franchisees.
Potential Mitigations:
- Carefully review the Franchise Agreement's venue selection clause and ensure it aligns with Rhode Island law.
- Seek legal counsel specializing in franchise law in Rhode Island to clarify the implications of this conflict.
- Negotiate with the franchisor to amend the clause for Rhode Island franchisees.
FDD Citations:
- Item 17, State Addenda: "Section 19-28.1-14 of the Rhode Island Franchise Investment Act provides that…Rhode Island law will apply to claims arising under the Rhode Island Franchise Investment Act."
Waiver of Claims Prohibition (Virginia, California, Hawaii, Illinois)
Low
Explanation:
- Several state addenda (Virginia, California, Hawaii, Illinois) prohibit waivers of claims under state franchise laws, including fraud in the inducement, and disclaimers of reliance on franchisor statements.
- This is a standard protection for franchisees and generally reduces risk.
Potential Mitigations:
- Review the specific language in the relevant state addenda to understand the scope of the prohibition.
FDD Citations:
- Item 17, State Addenda (Virginia, California, Hawaii, Illinois): "No statement, questionnaire, or acknowledgment…shall have the effect of (i) waiving any claims…or (ii) disclaiming reliance…"
Deferred Fee Requirement (Virginia, Hawaii)
Medium
Explanation:
- Virginia and Hawaii require deferral of initial franchise fees and other initial payments until the franchisor fulfills its pre-opening obligations. This impacts the franchisor's cash flow and could potentially delay franchise openings if the franchisor experiences financial difficulties.
Potential Mitigations:
- Verify the franchisor's financial stability and ability to meet pre-opening obligations without relying on upfront franchise fees.
- Confirm the specific pre-opening obligations in the Franchise Agreement and ensure they are clearly defined.
FDD Citations:
- Items 5 and 7, State Addenda (Virginia, Hawaii): "The [State Commission] requires us to defer payment…until the franchisor has completed its pre-opening obligations…"
Termination Without Cause Restriction (Virginia)
Medium
Explanation:
- Virginia law prohibits franchise termination without reasonable cause. This limits the franchisor's ability to terminate agreements arbitrarily, but disputes can arise over what constitutes "reasonable cause."
Potential Mitigations:
- Carefully review the termination provisions in the Franchise Agreement and compare them to Virginia's Retail Franchising Act.
- Consult with a Virginia franchise attorney to understand the interpretation of "reasonable cause" in the context of the Franchise Agreement.
FDD Citations:
- Item 17, State Addenda (Virginia): "Pursuant to Section 13.1-564…it is unlawful for a franchisor to cancel a franchise without reasonable cause."
Surety Bond Requirement (Illinois)
High
Explanation:
- Illinois requires a surety bond, which protects franchisees if the franchisor fails to meet its obligations. However, the FDD mentions a specific bond amount ($225,000). This amount may not be sufficient to cover all potential losses for a franchisee, especially considering the investment range ($189,000 - $371,000).
Potential Mitigations:
- Assess the adequacy of the surety bond amount in relation to the total investment and potential losses.
- Consider negotiating a higher bond amount or exploring additional safeguards.
FDD Citations:
- Exhibit H, Illinois Rider: "Pursuant to Section 200.505…we have posted a surety bond in the amount of $225,000.00…"
Governing Law Specification (Illinois)
High
Explanation:
- The Illinois rider specifies Illinois law as governing the agreement, except for the Federal Arbitration Act and other federal laws. This can create complexities and potentially increase litigation costs if disputes arise, especially for franchisees located outside of Illinois.
Potential Mitigations:
- Consult with legal counsel to understand the implications of Illinois law governing the agreement, particularly if you are not located in Illinois.
- Consider negotiating with the franchisor to choose a mutually agreeable governing law.
FDD Citations:
- Exhibit H, Illinois Rider: "Except for the U.S. Federal Arbitration Act…the laws of the State of Illinois will govern this Agreement."
Operational & Brand Risks
3 risks identified
1
2
Dependence on Affiliated and Designated Suppliers
High
Explanation:
- Franchisees are required to purchase nearly all (95-100%) of their supplies from Everbowl affiliates or designated vendors. This creates a high dependence and limits the franchisee's ability to negotiate better pricing or switch to alternative suppliers.
- This dependence can lead to higher costs for franchisees, reducing profitability. It also exposes franchisees to supply chain disruptions if the designated suppliers experience issues.
- The franchisor receives rebates from these suppliers, creating a potential conflict of interest. The franchisor may prioritize maximizing rebates over securing the best prices for franchisees.
Potential Mitigations:
- Carefully review the supplier agreements and pricing structures. Compare prices with market rates to assess competitiveness.
- Negotiate with the franchisor for greater flexibility in sourcing supplies, especially non-branded items.
- Join or form a franchisee association to collectively bargain for better terms with suppliers.
FDD Citations:
- Item 8: "You must purchase and use... all products, services and other items... that we periodically designate or approve... from our designated suppliers (which may be limited to us or affiliates)."
- Item 8: "We estimate that your purchases from us or approved suppliers... will represent approximately 95% to 100% of your total purchases..."
- Item 8: "We received rebates from third-party vendors of $6,063... based on franchisee purchases."
Limited Supplier Approval Process
Medium
Explanation:
- While the FDD mentions an alternate supplier approval process, it is stringent and subject to franchisor discretion. The $1,000 fee per product per request can be prohibitive, discouraging exploration of alternative suppliers.
- The franchisor's ability to revoke approval at any time creates uncertainty and potential disruption for franchisees.
Potential Mitigations:
- Thoroughly understand the alternate supplier approval process and associated costs before signing the franchise agreement.
- Negotiate for clearer criteria for supplier approval and a more transparent process.
- Document all communications regarding supplier approvals.
FDD Citations:
- Item 8: "...you or such supplier must submit a written request for our approval and we may charge you a fee (currently estimated to be $1,000 per product per request)..."
- Item 8: "We may revoke our prior approval of any product or supplier at any time upon written notice to you."
Mandatory System Standards Changes
Medium
Explanation:
- The franchisor can modify System Standards at its discretion, potentially impacting franchisee operations and costs. These changes could require new equipment, different ingredients, or altered procedures.
Potential Mitigations:
- Request clarity on the typical frequency and nature of System Standards changes.
- Negotiate for a reasonable notice period for implementing changes and financial assistance for significant modifications.
FDD Citations:
- Item 8: "We may, and expect to, modify our System Standards as we deem necessary."
Performance & ROI Risks
3 risks identified
2
1
Wide Range of Gross Sales Performance
High
Explanation:
- Item 19 reveals a significant disparity in gross sales figures between the top and bottom performing Everbowl stores. The highest reported gross sales are over $1 million, while the lowest are around $250,000. This wide range indicates a high degree of variability in potential profitability and suggests that achieving high sales figures is not guaranteed.
- The data shows that only a small percentage of stores meet or exceed the average gross sales. For example, only 2 out of 5 (40%) of the top 10% of stores and 3 out of 5 (60%) of the bottom 10% met or exceeded their respective average gross sales. This indicates that even within the top and bottom performers, there's inconsistency in achieving average sales levels.
Potential Mitigations:
- Carefully analyze the reasons behind the performance disparities. Investigate the factors contributing to the success of high-performing stores and the challenges faced by low-performing ones. This could involve site selection, marketing effectiveness, operational efficiency, and local market conditions.
- Develop a robust business plan that accounts for the potential for lower-than-average sales. Include conservative sales projections and explore strategies to maximize revenue streams, such as local marketing initiatives, delivery services, and catering options.
- Engage with existing franchisees, especially those in the middle and lower performance tiers, to understand their experiences and challenges. This can provide valuable insights into real-world operational realities and potential pitfalls to avoid.
FDD Citations:
- Item 19: Provides the gross sales data for different performance tiers, highlighting the wide range and the percentage of stores meeting or exceeding average sales.
- Item 19: "Some outlets have earned this amount. Your individual results may differ. There is no assurance that you will earn as much."
Limited Operating History
Medium
Explanation:
- Everbowl was founded in 2016, which represents a relatively short operating history in the competitive food and beverage industry. This limited track record makes it harder to predict long-term brand viability, consumer trends, and the franchisor's ability to adapt to changing market conditions.
Potential Mitigations:
- Thoroughly research the current market trends in the health-focused food segment and assess Everbowl's positioning within this landscape. Evaluate the brand's differentiation and its ability to sustain consumer interest over the long term.
- Analyze the franchisor's growth strategy and their plans for brand development and marketing support. A clear and well-defined roadmap can mitigate some of the risks associated with a shorter operating history.
- Seek advice from experienced franchise consultants and legal counsel to assess the long-term prospects of the franchise opportunity and the strength of the franchise agreement.
FDD Citations:
- General FDD: The FDD indicates the founding date of Everbowl (2016), highlighting the relatively short operational history.
No Assurance of Profitability
High
Explanation:
- The FDD explicitly states that there's no assurance of achieving similar sales figures as presented in Item 19. This disclaimer underscores the inherent risk in any business venture and emphasizes that individual franchisee results can vary significantly.
Potential Mitigations:
- Develop realistic financial projections based on conservative sales estimates and thorough expense analysis. Prepare for various scenarios, including lower-than-expected sales and potential cost overruns.
- Secure adequate financing to cover startup costs and operating expenses during the initial ramp-up period. Having sufficient capital reserves can help weather potential financial challenges and provide a buffer against unforeseen circumstances.
- Focus on operational efficiency and cost control measures to maximize profitability. Implement strategies to minimize waste, optimize staffing levels, and negotiate favorable vendor agreements.
FDD Citations:
- Item 19: "Some outlets have earned this amount. Your individual results may differ. There is no assurance that you will earn as much."
FDD Documents by Year
Download and view official Franchise Disclosure Documents
FDD Year: 2025
Uploaded: 8/8/2025
FDD Year: 2024
Uploaded: 8/25/2025
FDD Documents
Access and download Franchise Disclosure Documents by year