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B65/100FDD 2025

Gyushige — 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
65 / 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
Washington
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 franchised unit in system with unknown growth trajectory — suggests brand is pre-scaling or stalled
  2. 02MINORNo average revenue or net income disclosure (Item 19) — impossible to validate ROI on $1.3M-$2.9M investment
  3. 03MINORExtremely wide investment range ($1.6M spread) indicates inconsistent build-out costs and unclear unit economics
  4. 04MEDHigh initial investment ($1.28M-$2.9M) combined with undisclosed profitability creates severe financial risk
  5. 05MINOR3-5% royalty on top of unknown baseline costs — true net margins cannot be assessed
  6. 06MINORSingle unit franchise system raises questions about franchisor viability, support infrastructure, and proof of concept

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.