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How much does The Fresh Monkee cost?
Initial Investment Range
$181,200 to $570,300
Franchise Fee
$50,000 to $240,000
The franchise offered is for the establishment and operations of a fast-casual restaurant offering freshly prepared, made-to-order protein shakes made with nutrient-rich ingredients for on-premises and off-premises consumption under the Fresh Monkee® name and marks.
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The Fresh Monkee April 18, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: August 19, 2025
DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
The franchisor's audited financial statements reveal significant financial weakness. For both 2023 and 2024, Members' Capital was $0, indicating the company's liabilities equal its assets. Revenue is almost entirely from one-time franchise fees, not ongoing royalties, which is an unsustainable model. A restatement of prior financials and a state-mandated surety bond requirement in California further underscore financial instability and risk.
Potential Mitigations
- Your accountant must conduct a thorough analysis of the franchisor's financial statements, including the footnotes on revenue recognition and the restatement.
- A discussion with your business advisor is crucial to assess the risk of a franchisor being unable to provide long-term support.
- It is important to have your attorney clarify the protections offered by the state-required surety bond.
High Franchisee Turnover
Medium Risk
Explanation
The franchise system is very new, growing from one to seven franchised units in 2024, with one company-owned unit closing. While there is not yet a multi-year history of high turnover, this rapid growth from a small base presents a risk. The franchisor's support infrastructure could be strained, potentially leading to inadequate franchisee support and higher turnover in the future.
Potential Mitigations
- Speaking with a significant number of the earliest franchisees listed in Item 20 is critical to gauge their satisfaction with franchisor support.
- Your business advisor can help you assess if the franchisor's support team is equipped to handle this rapid expansion.
- Monitoring the franchisor's future Item 20 disclosures with your accountant will be important to track turnover trends as the system matures.
Rapid System Growth
High Risk
Explanation
The system is experiencing very rapid growth, expanding from one to seven franchised units in a single year. This aggressive expansion, combined with the franchisor's limited financial resources and capitalization as shown in Item 21, presents a significant risk. The support systems may not be able to keep pace with the growth, potentially leaving you with inadequate assistance.
Potential Mitigations
- Question the franchisor directly about their specific plans to scale support infrastructure, including hiring and training, to match this growth.
- It is vital to have your accountant analyze the franchisor's financials to determine if they have allocated sufficient capital for robust support services.
- Engaging a business advisor to evaluate the ratio of corporate support staff to franchisees is a prudent step.
New/Unproven Franchise System
High Risk
Explanation
The franchisor was formed in mid-2022 and had only seven operating franchises by the end of 2024. This limited operating history means the business model is largely unproven in a franchise context. An investment in such a new system carries higher inherent risks, including the potential for unforeseen operational challenges, inadequate support systems, and low brand recognition, which are all critical factors for your success.
Potential Mitigations
- A deep dive into the management team's prior industry and franchising experience with your business advisor is essential.
- Your attorney should help you contact the first few franchisees to learn about their experiences with the developing system.
- Creating conservative financial projections with your accountant is critical, given the lack of a long-term performance track record.
Possible Fad Business
Low Risk
Explanation
This risk was not identified in the FDD Package. A business centered on a temporary trend can be risky, as long-term franchise obligations may outlast consumer interest. Evaluating whether a product or service meets a sustainable, long-term market need, rather than a fleeting novelty, is a crucial step in your due diligence to protect your investment.
Potential Mitigations
- Research the industry's long-term market trends with a business advisor to assess the sustainability of the core business concept.
- Your financial advisor can help you evaluate the business model's resilience to shifts in consumer preferences and economic conditions.
- Discuss the franchisor's strategy for innovation and adaptation beyond current trends with their management team.
Inexperienced Management
Medium Risk
Explanation
While the founder has experience operating the core business, the management team has very limited experience in managing a franchise system. The Director of Franchise Operations, for example, only started in that role in July 2024. This lack of deep franchising expertise could lead to challenges in providing effective franchisee support, training, and strategic guidance for the growing system, presenting a risk to your operations.
Potential Mitigations
- A thorough review of the professional backgrounds of the entire management team with your business advisor is recommended.
- In your discussions with current franchisees, specifically inquire about the quality and effectiveness of the franchise-specific support they receive.
- Asking the franchisor about any experienced franchise consultants or advisory boards they use would provide valuable insight.
Private Equity Ownership
Low Risk
Explanation
This risk was not identified in the FDD Package. When a franchise is owned by a private equity firm, there's a potential risk that decisions may prioritize short-term investor returns over the long-term health of the franchisees. This can sometimes manifest as reduced support, increased fees, or a quick sale of the entire system.
Potential Mitigations
- If considering a PE-owned franchise, it's wise to research the firm's history with other franchise brands with a business advisor.
- Your attorney should carefully review assignment clauses in the franchise agreement to understand what happens if the system is sold.
- Contacting franchisees who have been with the system before and after a PE acquisition can offer valuable perspectives.
Non-Disclosure of Parent Company
Medium Risk
Explanation
Item 1 discloses that an affiliate, The Fresh Monkee, LLC, owns and licenses the brand's trademarks to the franchisor entity you are contracting with. However, the financial statements for this affiliate are not provided in the FDD. Because the franchisor entity itself has zero equity, the financial stability of the affiliate that controls the core intellectual property is a material but unknown factor.
Potential Mitigations
- Your attorney should inquire why the affiliate's financial statements are not included, given its critical role and the franchisor's weak financials.
- An accountant can help assess the potential risks of this ownership structure and the lack of financial transparency.
- Discussing the stability and relationship between the two entities with a business advisor is a prudent step.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified in the FDD Package. A predecessor is a company from which the current franchisor acquired the business assets. It's important to review the history of any predecessors for issues like litigation, bankruptcy, or high franchisee turnover, as these could indicate underlying problems with the business model that may have been inherited by the current franchisor.
Potential Mitigations
- Your attorney should carefully review Items 1, 3, and 4 of the FDD for any mention of a predecessor.
- If a predecessor exists, independent research into its history can be a valuable task for your business advisor.
- Asking long-term franchisees about their experience under any previous ownership can provide important context.
Pattern of Litigation
Low Risk
Explanation
This risk was not identified in the FDD Package, as Item 3 reports no disclosable litigation. A pattern of lawsuits, especially claims of fraud or misrepresentation brought by other franchisees, can be a significant warning sign about a franchisor's business practices and the overall health of the franchise system. Careful review of Item 3 is always a critical due diligence step.
Potential Mitigations
- It's always a good practice to have your attorney review Item 3 to confirm the absence of litigation and understand its implications.
- You can ask your attorney about conducting independent searches for litigation that may not have met the threshold for FDD disclosure.
- Discussing legal disputes with current and former franchisees can sometimes reveal issues not yet formally disclosed.
Disclosure & Representation Risks
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
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Financial & Fee Risks
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
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Legal & Contract Risks
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
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Territory & Competition Risks
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
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Regulatory & Compliance Risks
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
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Franchisor Support Risks
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
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Operational Control Risks
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
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Term & Exit Risks
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
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Miscellaneous Risks
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