Everbowl Logo

Everbowl

Everbowl Franchise, LLC
https://www.everbowl.com
1-760-330-9001
1300 Specialty Drive, #100, Vista, California 92081

Initial Investment Range

$119,250 to $370,850

Franchise Fee

$144,025 to $211,775

The franchise is the right to develop, own and operate a single store that specializes in the retail sale of health food bowls, smoothies, toppings, beverages and other related products under the everbowl brand.

Enjoy our complimentary free risk analysis below

Unlock the full risk analysis to access 9 more categories covering 100+ risks.

Everbowl March 31, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: July 16, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
4
3
3

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The financial statements for Everbowl Franchise, LLC (Everbowl) show a very thin equity position and a high debt-to-equity ratio. A significant asset is a large loan to its parent company, suggesting cash is being moved out of the franchise entity. The FDD also includes an explicit "Financial Condition" risk warning. This combination raises questions about Everbowl's long-term ability to support franchisees, invest in the brand, and remain financially stable, which could jeopardize your investment.

Potential Mitigations

  • A thorough review of the audited financial statements, including all notes and the large intercompany loan, by your accountant is essential.
  • Discuss the franchisor's capitalization and use of funds with your financial advisor to assess the stability of the entity you are contracting with.
  • Your attorney should analyze the explicit 'Financial Condition' risk factor and its potential implications for your franchise agreement.
Citations: Item 21, FDD Exhibit E

High Franchisee Turnover

High Risk

Explanation

Item 20 data for 2024 reveals an exceptionally high franchisee turnover rate. There were 21 negative exits (stores reacquired by the franchisor or ceased operations) out of 72 units at the start of the year, representing a 29% churn rate. This high rate, particularly the 17 stores reacquired by Everbowl, suggests potential systemic problems, franchisee dissatisfaction, or a lack of profitability in the system, presenting a significant risk to your potential success.

Potential Mitigations

  • It is critical to contact a significant number of former franchisees from the list in Exhibit D, especially those who left in 2024, to understand their reasons for exiting.
  • Engaging a business advisor to analyze the Item 20 data and compare it to industry benchmarks is strongly recommended.
  • Your accountant should help you model the financial impact of such a high potential failure rate on your own investment.
Citations: Item 20, FDD Exhibit D

Rapid System Growth

High Risk

Explanation

The system has grown rapidly, from 54 franchised outlets at the start of 2023 to 82 by the end of 2024, with a large pipeline of 46 more units signed but not yet open. This pace of growth, combined with the franchisor's thin capitalization noted in Item 21 and limited post-opening support obligations in Item 11, may strain its ability to provide adequate training, site selection assistance, and ongoing operational support to all franchisees.

Potential Mitigations

  • Discuss with a business advisor whether the franchisor's support infrastructure, as described in Item 11, appears adequate for this level of growth.
  • Question a broad sample of existing franchisees about their recent experiences with the quality and responsiveness of franchisor support.
  • Your attorney can help you scrutinize the franchisor's contractual support obligations to understand what is actually required of them.
Citations: Item 20

New/Unproven Franchise System

High Risk

Explanation

Everbowl itself has never owned or operated a corporate store; all operational experience resides with affiliates. The franchising entity was formed in 2018 and began franchising in late 2019, giving it a relatively short history as a franchisor. This lack of direct operational experience and limited track record in franchising presents a risk, as the systems, support structures, and brand value may not be fully proven, increasing your investment risk.

Potential Mitigations

  • A business advisor can help you conduct extensive due diligence on the operational experience of the affiliate companies and management team.
  • Contacting the earliest franchisees in the system to discuss their experience with the franchisor's learning curve and support evolution is crucial.
  • Your accountant should carefully analyze the financial statements to assess the system's viability and reliance on new franchise fees for revenue.
Citations: Item 1, Item 2, Item 20

Possible Fad Business

Medium Risk

Explanation

The business is centered on health food bowls and smoothies, a market that can be subject to rapidly changing consumer tastes and dietary trends. While currently popular, there is a risk that the core product offering could be a fad with limited long-term, sustainable demand. Your franchise agreement is a long-term contract, which could outlast the peak popularity of the trend, potentially impacting your long-term profitability and viability.

Potential Mitigations

  • Engage a business advisor to conduct independent market research on the long-term outlook for the superfood bowl industry.
  • Question the franchisor about their strategy and investment in research and development for new products to adapt to changing consumer trends.
  • A financial advisor can help you model different scenarios to assess the financial risk if the market for these products declines.
Citations: Item 1

Inexperienced Management

Medium Risk

Explanation

While the individuals in Item 2 have business experience, the franchisor entity itself, Everbowl, has never directly owned or operated an everbowl store. The operational experience for the brand resides within its affiliates. This structure means you are contracting with a licensing company whose management, while experienced in the broader brand, lacks direct experience managing the specific challenges of the franchisor-franchisee support relationship from an operational perspective, which could impact the quality of support you receive.

Potential Mitigations

  • A business advisor can help you assess the franchising-specific experience of the key executives listed in Item 2.
  • Speaking with current franchisees about the quality and relevance of the operational support they receive from the franchisor is critical.
  • Your attorney should review the support obligations outlined in Item 11 to determine how contractually committed the franchisor is to providing assistance.
Citations: Item 1, Item 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD package. Private equity ownership can be a risk if the firm prioritizes short-term profits over the long-term health of the franchise system. This might manifest as cuts in franchisee support, increases in fees, or a quick sale of the company, creating instability for franchisees. It is important to research the track record of any such owner.

Potential Mitigations

  • When analyzing an FDD, your attorney should research the history and reputation of any private equity firm listed as a parent or owner.
  • A business advisor can help you assess if there have been significant changes to a franchise system after a private equity acquisition.
  • It is wise to ask current franchisees about their experience under private equity ownership if it is disclosed.
Citations: Not applicable

Non-Disclosure of Parent Company Financials

Medium Risk

Explanation

Everbowl discloses its parent company, Everbowl Holdings, LLC. However, the parent does not provide a guarantee for the franchisor's obligations, and its financial statements are not included. Given that the franchisor has a very large receivable due from its parent, the financial health of the parent is material to understanding the franchisor's stability. The absence of the parent's financials obscures the full financial picture and risk profile of the consolidated enterprise.

Potential Mitigations

  • Your accountant should carefully consider the implications of the large inter-company loan without having visibility into the parent's financial condition.
  • A business advisor can help you research the parent company to the extent possible through public records.
  • Your attorney can help clarify the legal relationship and obligations between the parent and the franchisor subsidiary.
Citations: Item 1, Item 21

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD package. A predecessor is a company from which the franchisor acquired the business. An FDD must disclose information about predecessors, including their business history and any relevant litigation or bankruptcy. Incomplete disclosure can hide a troubled history of the brand or system, such as past failures or disputes with franchisees, which could be relevant to your investment decision.

Potential Mitigations

  • Your attorney should always review Item 1 for any mention of predecessors and cross-reference with Items 3 and 4 for legal history.
  • If a predecessor is identified, a business advisor can help you conduct independent research on that company's history.
  • It is beneficial to ask long-term franchisees about their experience with any predecessor companies.
Citations: Item 1

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD package. The franchisor states that no litigation is required to be disclosed in Item 3. This is a positive sign, as a pattern of lawsuits, especially those initiated by franchisees alleging fraud or misrepresentation, can indicate systemic problems with the franchisor’s operations or sales practices. However, this does not guarantee future disputes will not arise.

Potential Mitigations

  • Your attorney can conduct independent searches for litigation that may not have met the criteria for disclosure in Item 3.
  • It is still important to ask current and former franchisees about their relationship with the franchisor and any informal disputes.
  • A business advisor can help you assess the overall health of the franchisor-franchisee relationship within the system.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
8
0
7

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

3

Financial & Fee Risks

Total: 10
3
5
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

4

Legal & Contract Risks

Total: 16
6
5
5

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
2
3
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
5
2
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
2
2
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
3
6
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
10
6
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 2
2
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.