FranchiseVerdict
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D75/100FDD 2024

Ginger Sushi + Poke Shop — Litigation & Risk

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

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Elevated Risk

27 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
27
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

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
4
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

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
Arizona
State whose law governs disputes — relevant if you're not based there

What drove the 75/100 rating

Risk Score Breakdown

  1. 01MINORZero operating franchise units with unknown growth trajectory indicates no proven system or market validation
  2. 02HIGHGoing concern status is FALSE, suggesting material doubts about franchisor's financial viability and ability to support franchisees
  3. 03HIGHMultiple concluded litigations and arbitrations involving breach of contract, misrepresentation, and franchise law violations demonstrate pattern of legal disputes
  4. 04MINORNo Item 19 financial disclosures (average revenue/net income) prevents assessment of realistic unit economics and franchisee profitability
  5. 05MINORUnprotected territory combined with 6% royalty creates risk of internal competition and cannibalization with no geographic safeguards
  6. 06MEDHigh initial investment range ($281,800–$501,700) with no disclosed franchisee success metrics creates extreme financial risk
  7. 07MINORStartup franchisor with zero proven units represents pre-revenue concept with unvalidated business model in competitive QSR segment

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.