FranchiseVerdict
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D72/100FDD 2024

AFURI Ramen + Dumpling — Litigation & Risk

Food & Beverage - Full Service · FDD Items 3, 4 & 5

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Lower Risk

No litigation cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
72 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Not waived
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Oregon
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MEDCatastrophic unit decline of 66.7% YoY (from ~18 to 6 units) signals severe system distress or mass closures
  2. 02MINORNo average revenue or net income disclosure in FDD Item 19 prevents ROI validation and profit assessment
  3. 03MINORHigh initial investment ($591k–$1.15M) with 5% royalty creates significant financial risk without performance benchmarks
  4. 04MINOROnly 6 remaining units provides minimal peer network and suggests weak franchisee support or operational model failure
  5. 05MINORAsian cuisine segment faces labor cost pressures, food cost volatility, and intense local competition in most markets

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.