Protein Bar & Kitchen
Initial Investment Range
$369,500 to $685,000
Franchise Fee
$40,400 to $51,900
The franchise is for a Protein Bar & Kitchen business that offers customers healthy food choices consisting of customizable high-protein salads, wraps, bowls, shakes and smoothies, and related products.
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Protein Bar & Kitchen April 28, 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.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
The audited financial statements for Protein Bar and Kitchen Franchising, LLC (PBKFL) show a net loss of $203,501 for 2024 and a Member's Deficit (negative net worth) of $171,893 at year-end. Financial notes state the company is dependent on its affiliate for funding. This financial weakness is a material risk to PBKFL's ability to support you and grow the system. The franchisor explicitly flags this in the Virginia addendum.
Potential Mitigations
- Your accountant must conduct a deep analysis of the audited financials, including the significant net loss and negative equity.
- It is crucial for your attorney to review the details of any required financial assurances, such as surety bonds mentioned in state addenda.
- Discuss the franchisor's capitalization and plans for achieving profitability with your financial advisor.
High Franchisee Turnover
High Risk
Explanation
Item 20 and Exhibit G-2 show that one of the first three franchisees (Crown Point Coffee, Inc.) ceased operations in 2025. The franchisor's financial statements confirm this franchisee filed for Chapter 7 bankruptcy and terminated its agreement. A failure rate of one-third for a new system's initial cohort is an extremely concerning indicator of potential systemic problems, which could relate to profitability, support, or the business model itself.
Potential Mitigations
- You must treat this early franchisee failure as a significant red flag; a business advisor can help assess the implications.
- Speaking with the other two current franchisees listed in Exhibit G-1 about their performance and challenges is essential.
- Your attorney should help you ask the franchisor for a detailed, verifiable explanation for this bankruptcy and closure.
Rapid System Growth
Low Risk
Explanation
The FDD does not indicate that the system is growing at a pace that outstrips its support capabilities. Item 20 shows very modest growth, with only three franchised units opened as of the end of 2024. While not a risk of being unsupported due to rapid growth, this slow start for a new system carries its own risks related to brand recognition and momentum.
Potential Mitigations
- In discussions with the franchisor, your business advisor should help you probe their strategy for accelerating franchise sales and development.
- Your attorney can help you ask existing franchisees about their perspective on the pace of system growth and brand building efforts.
- An accountant can help you model the potential impact of slow brand development on your revenue projections.
New/Unproven Franchise System
High Risk
Explanation
PBKFL is a new franchisor, formed in January 2023, with very limited operating history as a franchise system. As disclosed in Item 20 and the financial statements, the system has only a few franchisees and one has already filed for bankruptcy. Investing in a new, unproven franchise system carries substantial risks, including the possibilities of an unrefined business model, inadequate support infrastructure, and low brand recognition, which may impact your success.
Potential Mitigations
- A business advisor can help you conduct extensive due diligence on the viability of the business model and the experience of the management team.
- It is imperative to speak with the few existing franchisees to understand the reality of operating within this new system.
- Given the higher risk, your attorney should attempt to negotiate more favorable terms, such as enhanced support or territorial rights.
Possible Fad Business
Low Risk
Explanation
This risk was not identified in the FDD Package. A fad business is one based on a short-lived trend, which can threaten long-term viability. The Protein Bar & Kitchen concept is based on the healthy food and fast-casual dining sectors, which are established market segments rather than temporary fads. However, you must still assess its long-term appeal in your specific market.
Potential Mitigations
- Your business advisor should help you research the long-term consumer demand for healthy fast-casual concepts in your local area.
- Discuss the franchisor's strategies for menu innovation and brand evolution to stay competitive with your business advisor.
- Evaluate the concept's resilience to economic shifts and changing dietary trends with a financial advisor.
Inexperienced Management
Medium Risk
Explanation
Item 2 indicates that while the management team has executive experience with the parent company, PBI, and other restaurant brands, the franchisor entity itself is very new (formed in 2023). A prospective franchisee could find that the team's experience in running corporate stores may not directly translate to providing effective support and systems for independent franchise owners, which is a different skill set.
Potential Mitigations
- Interviewing existing franchisees about the quality and effectiveness of management's support is a critical step.
- A business advisor can help you assess whether the management team's skills are well-suited to supporting a franchise network.
- In your discussions, probe management on their specific experience and philosophy regarding franchisee support.
Private Equity Ownership
Medium Risk
Explanation
Item 1 discloses that the franchisor, PBKFL, is part of a larger corporate structure, with its ultimate parent being Catterton Growth Partners II, L.P., a private equity firm. Private equity ownership can mean a focus on short-term returns, which might lead to decisions that benefit investors over the long-term health of franchisees. This could include increased fees, reduced support, or a sale of the system.
Potential Mitigations
- A business advisor can help you research the private equity firm's reputation and its track record with other franchise brands.
- It is important to ask current franchisees if they have noticed any changes in support or system focus since the PE involvement.
- Your attorney should carefully review the franchisor's rights to sell or assign the franchise system.
Non-Disclosure of Parent Company
Low Risk
Explanation
This specific risk was not identified. The FDD discloses the parent companies in Item 1, up to the private equity firm Catterton. The franchisor's audited financial statements in Item 21 are provided. However, a franchisee should be aware that the franchisor is a newly formed subsidiary and, as noted in its financials, relies on funding from its affiliate, PB Restaurants, LLC. The financial health of this affiliate is not disclosed, creating some uncertainty.
Potential Mitigations
- Your accountant should analyze the franchisor's financials, paying close attention to the notes on related-party transactions and funding dependency.
- In discussions with the franchisor, you should seek to understand the nature and stability of the financial support from its parent entities.
- Your attorney can advise on the legal implications of the franchisor being a thinly capitalized subsidiary.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified in the FDD Package. Item 1 states, "We have no predecessors or other affiliates that are required to be disclosed in this Item 1." Therefore, there is no disclosed history of predecessor entities from which to assess potential inherited problems. A prospective franchisee should rely on the disclosed history of the current franchisor and its management.
Potential Mitigations
- Confirm with your attorney that the franchisor's definition and application of 'predecessor' align with FTC requirements.
- A business advisor can help you focus due diligence on the track record of the current management team and the performance of the existing brand.
- Ask existing franchisees about the history of the brand and any significant past changes in ownership or management.
Pattern of Litigation
Low Risk
Explanation
This risk was not identified in the FDD Package. Item 3 states, "No litigation is required to be disclosed in this Item." The absence of disclosed litigation, especially for a new franchisor, is positive but does not eliminate all risk. You should still perform due diligence, as not all disputes result in litigation that requires disclosure.
Potential Mitigations
- Your attorney should confirm the scope of disclosure required in Item 3 to ensure nothing has been improperly omitted.
- Engaging a business advisor to search for any public records of disputes or news articles involving the brand can be a prudent step.
- In your calls to other franchisees, it is wise to ask about any disputes they are aware of within the system, even if not formal litigation.
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
Unlock Full Risk Analysis
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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
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
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
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
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
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
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
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
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
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
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