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Lviv Croissants

LC Franchise Group LLC
https://lvivcroissants.com/us
1-470-370-5775
500 Thrasher St, Apt 2301, Norcross, GA 30071

How much does Lviv Croissants cost?

Initial Investment Range

$228,000 to $3,009,500

Franchise Fee

$20,000 to $50,000

We offer franchises to operate a Lviv Croissants bakery restaurant Outlet serving mainly breakfast and lunch, featuring sweet and savory croissants, soups and salads.

Enjoy our complimentary free risk analysis below

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

Lviv Croissants November 7, 2024 FDD Risk Analysis

Free FDD Library AI Analysis Date: August 22, 2025

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

1

Franchisor Stability Risks

Start Here
Total: 10
3
1
6

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor, LC Franchise Group LLC (LCFG), is a new entity formed in August 2024 with no operating history and minimal capitalization ($150,000). Its audited balance sheet shows no revenue, expenses, or liabilities. This indicates a significant risk that LCFG may lack the financial resources to provide promised support, invest in the brand, or remain solvent, jeopardizing your investment. The auditor's opinion letter also incorrectly names the company, a significant error.

Potential Mitigations

  • A franchise accountant should thoroughly analyze the franchisor's and parent company's financial statements, noting the startup nature and minimal capital.
  • It is critical that your attorney investigate the discrepancy in the company name on the audit report in Exhibit H.
  • Given the financial uncertainty, your business advisor should help you create a business plan with very conservative projections and substantial cash reserves.
Citations: Items 1, 21, Exhibit H

High Franchisee Turnover

Low Risk

Explanation

This risk was not identified in the FDD package as LCFG is a new franchisor in the United States with no franchisee operating history. High turnover is a critical indicator of systemic problems. You will be among the first franchisees, so there is no data to analyze yet, which itself represents a risk of the unknown.

Potential Mitigations

  • As one of the first franchisees, your business advisor should help you understand there is no track record of franchisee success or failure to evaluate.
  • Once other franchisees are operating, your attorney can advise on how to monitor future FDDs for any signs of high turnover.
  • Discuss the franchisor's franchisee relationship philosophy and support systems with them directly, as there is no history to review.
Citations: Item 20

Rapid System Growth

Low Risk

Explanation

This risk was not identified in the FDD package. The franchisor is a new system with no outlets operating at the start of 2024 and no history of rapid growth. However, you should monitor future FDDs to assess if the planned growth outpaces the franchisor's ability to provide support.

Potential Mitigations

  • As this is a new system, your business advisor can help you assess the franchisor’s capacity to support its projected growth.
  • It is important to discuss with the franchisor their specific plans for scaling support infrastructure as the system expands.
  • Engaging with a franchise attorney to understand the support commitments outlined in the Franchise Agreement is a crucial step.
Citations: Items 1, 20

New/Unproven Franchise System

High Risk

Explanation

The franchisor entity is a startup, formed in August 2024 with no operating history in the US. The parent company has only operated one US location since August 2024. While the brand exists in Europe, the FDD states the US model is “substantially different.” You would be an early adopter in an unproven US system, which carries significant risks regarding brand recognition, operational kinks, and adequacy of support.

Potential Mitigations

  • Thorough due diligence on the European operations and management's specific US market plans is essential, with guidance from your business advisor.
  • Your accountant should help you build financial models that account for the higher risk and potentially slower ramp-up of an unproven brand.
  • A franchise attorney should review the support obligations to ensure they are clearly defined and not purely discretionary.
Citations: Items 1, 2, 20, 21

Possible Fad Business

Low Risk

Explanation

This risk was not identified in the FDD package. The business model, a bakery cafe focused on croissants, is a well-established restaurant category. The concept does not appear to be based on a short-term trend or novelty, reducing the risk that it could be a fad with limited long-term consumer demand.

Potential Mitigations

  • A business advisor can help you conduct local market research to confirm sustained demand for this type of bakery cafe in your specific area.
  • Understanding the competitive landscape for similar fast-casual and bakery concepts is a task for which your business advisor can provide assistance.
  • Your accountant can assist in building financial projections that assess the long-term viability against local competition.
Citations: Item 1

Inexperienced Management

Medium Risk

Explanation

While some US-based management has franchising experience, the franchisor entity itself is new to the US market. Key operational leaders are from the Ukrainian parent company. Their experience with the European model is substantial, but their familiarity with US franchise laws, supply chains, and consumer markets may be limited. This could present challenges in providing effective, market-specific support and guidance to US franchisees.

Potential Mitigations

  • A business advisor can help you investigate the specific US market experience of the entire management team.
  • Question the franchisor directly about how their European experience translates to the substantially different US market.
  • Your attorney should verify that the Franchise Agreement is fully compliant with all US federal and state franchise laws.
Citations: Items 1, 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD package. Item 1 indicates the franchisor and its parent companies are privately held by individuals involved in the business, not by a private equity firm. Therefore, the specific risks associated with a PE firm's typical investment horizon and focus on short-term returns do not appear to be present here.

Potential Mitigations

  • It's still valuable for your attorney to review the ownership structure to confirm the absence of undisclosed controlling financial partners.
  • Understanding the long-term vision of the current individual owners is a key topic to discuss with the franchisor.
  • Your business advisor can help research the background of the principal owners to understand their track record and business philosophy.
Citations: Item 1

Non-Disclosure of Parent Company

High Risk

Explanation

The franchisor is a new, thinly capitalized entity. It is a sublicensee of its parent, Fast Food Franchising Group USA, Inc. While the parent is disclosed, its financial statements are not provided, nor is a guarantee of the franchisor's performance. This leaves you to rely solely on a new entity with minimal assets to fulfill all contractual support obligations, which presents a significant financial risk.

Potential Mitigations

  • Given the franchisor's limited financial standing, your attorney should inquire why parent company financials or a performance guarantee are not provided.
  • Assessing the ability of the franchisor to meet its obligations without parental support is a crucial task for your accountant.
  • The risks associated with the complex sublicensing structure should be thoroughly reviewed by your franchise attorney.
Citations: Item 1, Item 21, FA § 13

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD package. LCFG is a new entity and states in Item 1 that it has no predecessors. Therefore, there are no historical issues related to a prior entity's performance, litigation, or bankruptcy that could be concealed or carry over to the new franchisor.

Potential Mitigations

  • Your attorney can help you confirm the new franchisor's corporate history to ensure no predecessor has been omitted.
  • A business advisor can assist in researching the history of the Lviv Croissants brand in its home country for additional context.
  • Engaging with the franchisor about their long-term vision for the brand in the U.S. is a recommended step.
Citations: Items 1, 3, 4

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD package. Item 3 states that no litigation is required to be disclosed. For a new franchisor with no operating history, this is expected. However, it provides no track record for how the franchisor handles disputes with its franchisees.

Potential Mitigations

  • It's important to have your attorney carefully review the dispute resolution clauses in the Franchise Agreement, as there's no litigation history to analyze.
  • Future FDDs should be monitored for any litigation trends, which your attorney can help you evaluate.
  • Discuss the franchisor's approach to resolving disagreements with them directly to gauge their philosophy.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
2
2
11

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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3

Financial & Fee Risks

Total: 10
4
4
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

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4

Legal & Contract Risks

Total: 16
5
5
6

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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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

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6

Regulatory & Compliance Risks

Total: 10
4
4
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

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7

Franchisor Support Risks

Total: 4
2
1
1

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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8

Operational Control Risks

Total: 12
3
5
4

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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9

Term & Exit Risks

Total: 18
7
6
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

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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