FranchiseVerdict
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B63/100FDD 2026

FujiSan Asian Bar Kiosk — Litigation & Risk

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

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Moderate — Review

2 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
63 / 100
FranchiseVerdict composite
Rating
MODERATE
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 63/100 rating

Risk Score Breakdown

  1. 01MINORNo average revenue or net income disclosure (Item 19) prevents realistic ROI assessment on $3,250–$104,055 investment range
  2. 02MINORSlow unit growth (4.2% YoY) with 773 units suggests market saturation or franchisee churn in mature system
  3. 03MINORWide investment spread ($3,250–$104,055) indicates highly variable unit economics; kiosk model likely commoditized with thin margins
  4. 04MINORUnprotected territory creates direct competition risk from other franchisees and company-owned units
  5. 05HIGHRecent litigation (2022 lawsuit dismissed May 2024) alleging breach of contract and misrepresentation signals franchisee disputes
  6. 06MINOR2019 'no-poach' violation requiring state discontinuance order demonstrates prior regulatory compliance issues
  7. 07MINORShort 3-year term limits operator ability to recoup investment and build equity
  8. 08HIGHGoing Concern = False raises questions about franchisor's financial stability and long-term viability

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.