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D75/100FDD 2025

Ebiga Jjamppong — 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
75 / 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 75/100 rating

Risk Score Breakdown

  1. 01HIGHGoing concern status is FALSE — indicates potential financial instability or operational challenges at corporate level
  2. 02MINORZero existing franchise units with unknown growth trajectory — no proven system, no comparable unit economics, no franchisee success data
  3. 03MINORNo Item 19 financial disclosure (Avg Revenue/Net Income not provided) — impossible to validate ROI on $337k-$585k investment
  4. 04MINORHigh initial investment ($337k-$585k) paired with zero operating units creates extreme unproven business risk
  5. 05MINORFranchise appears to be pre-revenue or pre-launch stage with no demonstrable market validation
  6. 06MINOR5-year term is relatively short for capital recovery in food service, suggesting franchisor uncertainty
  7. 07HIGHNo litigation disclosure combined with going concern issues may indicate recent startup or restructuring

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.