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B56/100FDD 2025

Hissho Sushi — 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
56 / 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
1 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
North Carolina
State whose law governs disputes — relevant if you're not based there

What drove the 56/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 financial disclosure (average revenue and net income not provided) — impossible to assess unit economics or profitability
  2. 02MINORRoyalty structure ranges 0-25% with no clarity on how/when rates increase — potential for unexpected margin compression
  3. 03MINOR2,449 units with only 9.1% YoY growth is modest for established brand; no context on unit closures or churn rate
  4. 04MINORUnprotected territory creates direct competition risk — franchisor can award same area to competitors
  5. 05MEDShort 3-year term with no renewal information disclosed — recurring renegotiation risk and potential forced exit
  6. 06MINORWide investment range ($26,849–$136,829) suggests highly variable unit economics and unclear path to profitability
  7. 07MINORLow franchise fee ($7,500) relative to investment range indicates franchisor revenue heavily dependent on ongoing royalties

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.