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B65/100FDD 2025

Kazzan Ramen — 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
California
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 existing unit makes system viability and replicability impossible to validate
  2. 02MEDNo disclosed average revenue or net income data (Item 19) prevents ROI assessment on $385.5K-$773K investment
  3. 03MINORExtremely wide investment range ($387.5K spread) suggests undefined or variable startup costs
  4. 04MINORHigh initial investment relative to single-unit proof of concept creates disproportionate franchisee risk
  5. 05MEDNo disclosed unit growth trajectory indicates either brand is too new or growth is stalled
  6. 06MINORRamen category is highly competitive with established players (Tonkotsu, Ippudo, etc.) without differentiation stated

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.