FranchiseVerdict
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D72/100FDD 2025

BBQ + Rice Korean Rice Bowl — 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
Waived
You give up the right to a jury trial
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
California
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MINOROnly 5 units in system with unknown/stagnant growth trajectory raises viability concerns
  2. 02MINORNo Item 19 financial disclosure (avg revenue/net income) prevents realistic ROI analysis and suggests weak performance data
  3. 03HIGHGoing Concern status = False indicates franchisor may face financial/operational sustainability issues
  4. 04MINORUnprotected territory creates direct competition risk within franchisee's service area
  5. 05MINORWide investment range ($279.5K-$550K) with no corresponding revenue guidance suggests inconsistent unit economics
  6. 06MED4% royalty on undisclosed sales provides no visibility into actual ongoing costs or profitability
  7. 07MINOR5-year term is relatively short; refranchising or system collapse risk is material

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.