B63/100FDD 2025
L & L Hawaiian Barbecue — Litigation & Risk
Food & Beverage - Full Service · FDD Items 3, 4 & 5
Moderate — Review
3 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
3
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
63 / 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
5 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
Hawaii
State whose law governs disputes — relevant if you're not based there
What drove the 63/100 rating
Risk Score Breakdown
- 01MINORVirtually flat unit growth (0.9% YoY) suggests stagnant or declining system health despite 227 locations
- 02MEDNo disclosed average revenue or net income (missing Item 19) prevents accurate ROI assessment and suggests franchisor may be hiding underperformance
- 03MINORThree documented arbitration actions against franchisees within recent period indicate compliance issues and potential franchisor-franchisee relationship strain
- 04MINORUnprotected territory creates direct competition risk; new franchisees could cannibalize sales from nearby units
- 05MINORWide investment range ($253,950–$838,460) indicates unclear startup costs and potential hidden expenses
- 06HIGHGoing Concern status is FALSE, raising questions about corporate financial stability and long-term franchisor support
- 07MINORRoyalty structure (1.5%–4%) variance suggests inconsistent deal terms or performance-based penalties that aren't transparent
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.