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A51/100FDD 2025

JINYA Ramen Bar — Litigation & Risk

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

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Moderate — Review

4 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
4
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
51 / 100
FranchiseVerdict composite
Rating
STRONG
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
20
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$19.2M
Avg loan size
$960K
Participating lenders
11

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

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
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
California
State whose law governs disputes — relevant if you're not based there

What drove the 51/100 rating

Risk Score Breakdown

  1. 01MEDNet income not disclosed in Item 19 — impossible to assess true profitability despite $2.78M average revenue
  2. 02HIGHFour litigation settlements totaling $828,000+ within 7 years, including territorial exclusivity disputes and fraud allegations
  3. 03MEDHigh initial investment ($1.6M–$3.5M) combined with undisclosed net income creates severe ROI uncertainty
  4. 04MINORModest unit growth (11.3% YoY across only 62 units) suggests market saturation or franchisee struggles
  5. 05MINORADA compliance lawsuit (2020) indicates potential operational/compliance gaps across system
  6. 06MINORTerritorial exclusivity dispute with franchisor (SF Yakiniku arbitration) raises questions about territory protection reliability

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.