B65/100FDD 2025
Kyochon — Litigation & Risk
Food & Beverage - Full Service · FDD Items 3, 4 & 5
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
- 01MEDOnly 5 units system-wide suggests extremely limited operating history and unproven scalability
- 02MEDNo average revenue or net income disclosure (missing Item 19) prevents realistic ROI assessment
- 03MEDHigh investment range ($543.5K–$1.09M) with no disclosed earnings creates payback period uncertainty
- 04MINORUnprotected territory creates direct competition risk from other franchisees in same market
- 05MINOR3-year term is unusually short and may indicate franchisor uncertainty or franchisee protection concerns
- 06MINORMinimal unit count makes it impossible to validate franchise model viability or franchisee satisfaction rates
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.