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D69/100FDD 2023

Fusabowl — 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
69 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

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

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
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
New York
State whose law governs disputes — relevant if you're not based there

What drove the 69/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status indicates financial instability at franchisor level
  2. 02MEDOnly 7 units system-wide suggests minimal scale, weak brand recognition, and limited support infrastructure
  3. 03MINORNo average revenue or net income disclosure (Item 19) prevents ROI validation and suggests poor unit economics
  4. 04MINORTerritory not protected creates direct competition risk between franchisees and cannibalizes sales
  5. 05MINORWide investment range ($303K–$627K) indicates inconsistent site costs and unpredictable startup expenses
  6. 06MINORUnknown unit growth trajectory raises questions about system viability and franchisee retention

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.