FranchiseVerdict
Paris Banh Mi logo
B61/100FDD 2025

Paris Banh Mi — Litigation & Risk

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

Back to overview

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
61 / 100
FranchiseVerdict composite
Rating
MODERATE
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
16
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

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
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 61/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status is FALSE — franchisor may lack financial viability to support franchisees
  2. 02HIGHActive litigation including trademark infringement, breach of contract, and deceptive practice claims from licensees suggests operational and legal instability
  3. 03MINORWashington State Department of Financial Institutions investigation indicates potential regulatory violations or financial misconduct
  4. 04MEDNo disclosed average revenue or net income data prevents ROI validation and suggests either poor performance or deliberate opacity
  5. 05MINORExtreme unit growth (1400% YoY) with only 16 units indicates unreliable metrics and possible inflated expansion claims
  6. 06MINORHigh initial investment ($478k-$828k) combined with no financial performance disclosure creates high-risk capital exposure
  7. 07MED4% royalty on undisclosed sales revenue means franchisees cannot project actual profit margins

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.