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B59/100FDD 2025

Inchin's Bamboo Garden — Litigation & Risk

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

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
59 / 100
FranchiseVerdict composite
Rating
MODERATE
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
Total loan volume
$1.3M
Avg loan size
$317K
Participating lenders
4

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

What drove the 59/100 rating

Risk Score Breakdown

  1. 01MINORRegulatory violation in 2024: WADFI alleged unregistered franchise sales (2017); franchisor signed Consent Order without admitting wrongdoing, suggesting compliance gaps
  2. 02MEDNo Item 19 financial disclosure: Average revenue and net income not disclosed, preventing ROI analysis on $633,500-$866,000 investment with 6% royalty burden
  3. 03MEDStagnant or undisclosed unit growth: Only 21 units with no growth trajectory provided; mature systems typically show 30+ units or documented expansion
  4. 04HIGHGoing Concern status: Marked as 'False' suggests potential financial instability or structural concerns at franchisor level
  5. 05MINOROpaque financial performance: 6% royalty on unknown revenue streams creates uncertainty about actual franchisee profitability and break-even timelines

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.