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SoBol

Acai Industries, Inc.
https://www.mysobol.com
1-631-419-3470
601 Heritage Drive, #498, Jupiter, Florida 33458

How much does SoBol cost?

Initial Investment Range

$195,600 to $695,700

Franchise Fee

$35,000 to $85,000

The franchise that we offer is for SoBol, a fast-casual restaurant serving fresh, made to order, acai bowls, fruit bowls, fruit smoothies and other healthy menu items.

Enjoy our complimentary free risk analysis below

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

SoBol May 12, 2025 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
2
2
6

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The auditor's report in Exhibit D includes a concerning "Emphasis of Matter" paragraph, disclosing a significant, multi-year fraud by a former bookkeeper that required restating past financials. While the company appears profitable, this event indicates a severe historical weakness in internal controls and management oversight. This could create risks regarding the company's operational stability and its ability to manage finances and support systems effectively.

Potential Mitigations

  • Your accountant should review the details of the restatement and the 'Emphasis of Matter' to assess its potential impact on future operations.
  • Inquiring with the franchisor about specific changes made to their internal controls since this event is a key due diligence step for your business advisor.
  • A thorough review of these findings with your franchise attorney is essential to understand the potential governance risks involved.
Citations: Item 21, Exhibit D (Auditor's Report, Note 11)

High Franchisee Turnover

High Risk

Explanation

The franchisor discloses in Item 20 that former franchisees have signed confidentiality clauses restricting them from discussing their experiences with you. This significantly limits your ability to perform effective due diligence by speaking with those who have left the system. While the stated turnover numbers are moderate, the use of such clauses could obscure the full story behind franchisee exits, which presents a substantial information risk.

Potential Mitigations

  • Your attorney must explain the serious implications of these confidentiality clauses on your due diligence process.
  • Place greater emphasis on speaking with the current franchisees listed in Exhibit H, asking detailed questions about system support and profitability.
  • A business advisor can help you assess the heightened risk when a full picture from former operators is unavailable.
Citations: Item 20

Rapid System Growth

Medium Risk

Explanation

The system shows slowing growth, with a net increase of only two franchised outlets in 2024, compared to eight in 2022. While rapid growth has its own risks, a slowdown could indicate market saturation, declining interest in the franchise, or other systemic challenges. This trend warrants careful investigation into the franchise's current market position and growth prospects before you invest.

Potential Mitigations

  • Asking the franchisor for their explanation of the slowing growth trend is an important step for your due diligence.
  • Your business advisor can help you analyze market trends and competition to assess if the concept has reached a saturation point in key markets.
  • Discussing the system's current momentum and challenges with existing franchisees can provide valuable context.
Citations: Item 20

New/Unproven Franchise System

Low Risk

Explanation

This risk was not identified in the FDD Package. Acai Industries, Inc. (Acai Industries) was established in 2016 and has been franchising since 2016, with over 60 operating units. This suggests an established system rather than a new or unproven one. However, a prospective franchisee should always evaluate the franchisor's history and track record as part of their due diligence.

Potential Mitigations

  • A business advisor can help you assess the franchisor's track record and maturity within its specific market segment.
  • Speaking with long-standing franchisees about the system's evolution and the franchisor's experience is a crucial due diligence step.
  • Your accountant should still review the financial statements over the past three years to evaluate the stability of the established system.
Citations: Items 1, 2, 20, 21

Possible Fad Business

Medium Risk

Explanation

The business is centered on acai bowls and smoothies, a market that has seen significant growth but is also highly competitive and potentially subject to shifting health and food trends. A prospective franchisee could find that the long-term consumer demand might be less stable than for more traditional food concepts. Your investment's success is tied to the enduring popularity of this specific food category.

Potential Mitigations

  • Engaging a business advisor to research the long-term market trends for acai bowls and similar health food concepts is recommended.
  • It's prudent to ask the franchisor about their strategy for product innovation and adaptation to evolving consumer tastes.
  • You should independently assess the level of local competition and demand in your target market.
Citations: Items 1, 11

Inexperienced Management

Low Risk

Explanation

This risk was not identified in the FDD Package. Item 2 indicates that the key executives, particularly the President Jason Mazzarone, have been with the company since its formation in 2016 and have prior, relevant experience operating affiliate-owned SoBol locations since 2014. This suggests a management team with direct, long-term experience in this specific business concept.

Potential Mitigations

  • It is still valuable to interview current franchisees about their perception of the management team's competence and support.
  • A business advisor can help you further research the professional backgrounds of the key executives listed in Item 2.
  • During discovery day, you should make your own assessment of the management team's professionalism and strategic vision.
Citations: Item 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD Package. According to Item 1, the franchisor, Acai Industries, does not have a parent company and is not described as being owned by a private equity firm. The ownership appears to be stable with the original founders. Therefore, the specific risks associated with private equity ownership, such as a focus on short-term returns, do not appear to be present.

Potential Mitigations

  • Your attorney should still confirm the ownership structure and review the assignment clauses in the Franchise Agreement.
  • It's wise to ask the franchisor about any long-term plans for the sale of the company.
  • A business advisor can help you research the background of the individual owners for a complete picture.
Citations: Items 1, 17, 21

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified in the FDD Package. Item 1 states that Acai Industries does not have a parent company. The financial statements provided in Item 21 are for the franchisor entity itself. Therefore, the risk of a parent company's financials being hidden or required but not provided is not applicable here.

Potential Mitigations

  • Your attorney should confirm the corporate structure and ensure no controlling entities are undisclosed.
  • An accountant's review can verify that the provided financial statements are for the correct operating entity.
  • You should always ensure the entity you are contracting with is the same one whose financials are disclosed.
Citations: Items 1, 21

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD Package. Item 1 states that the franchisor has no predecessors. Therefore, the risk of undisclosed negative history from a prior company that operated the brand is not present. The franchisor, Acai Industries, appears to have started and developed the system under its current ownership and corporate identity.

Potential Mitigations

  • A franchise attorney can help you verify the franchisor's corporate history and confirm the absence of any predecessors.
  • It's still a good practice to ask early franchisees about the history of the company to ensure there are no unmentioned prior business structures.
  • A business advisor can assist with background checks on the franchisor entity to confirm its history.
Citations: Items 1, 3, 4

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." This indicates there is no current or recent history of material litigation involving the franchisor, its predecessors, or key personnel related to fraud, franchise law violations, or similar claims. A clean litigation history is a positive factor, though not a guarantee of future performance.

Potential Mitigations

  • It's prudent to conduct independent online searches for any informal complaints or legal issues not meeting the threshold for FDD disclosure.
  • Your attorney can advise on the specific, narrow criteria for litigation that must be disclosed in Item 3.
  • Asking existing franchisees about their relationship with the franchisor can provide insight into the potential for disputes.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
3
4
8

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
6
6
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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5

Territory & Competition Risks

Total: 5
3
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

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6

Regulatory & Compliance Risks

Total: 10
6
2
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
1
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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8

Operational Control Risks

Total: 12
5
6
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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9

Term & Exit Risks

Total: 18
6
9
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

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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