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B63/100FDD 2024

Mogumogu Mazemen And 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
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
Not waived
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
No
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 63/100 rating

Risk Score Breakdown

  1. 01MINOROnly 3 units in system with unknown growth trajectory suggests early-stage or stalled expansion
  2. 02HIGHGoing Concern = False indicates franchisor financial instability or uncertainty
  3. 03MINORHigh investment range ($334.5K-$842.5K) relative to only 3 operating units raises scalability questions
  4. 04MINORNo Item 19 financial performance representations limits ability to validate the $240K avg net income claim
  5. 05MINORWide investment variance ($508K spread) suggests inconsistent unit economics or undefined build-out standards
  6. 06MINORMinimal franchise fee ($30K) combined with high unit costs may indicate franchisor dependent on royalties for viability

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.