D71/100FDD 2022
Poké Bar Dice & Mix — Litigation & Risk
Food & Beverage - Full Service · FDD Items 3, 4 & 5
Moderate — Review
1 case disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
71 / 100
FranchiseVerdict composite
Rating
CAUTION
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 71/100 rating
Risk Score Breakdown
- 01MEDUnit count declined 11.4% year-over-year (58 units) indicating contraction and potential model weakness
- 02MINORNo average revenue or net income disclosure (Item 19) prevents realistic ROI assessment and suggests franchisor may lack strong unit economics to share
- 03MINORUnprotected territory creates direct competition risk—multiple franchisees could operate in same geographic area, cannibalizing sales
- 04HIGHRecent litigation by former franchisee alleging registration law violations and fraud (though dismissed) raises compliance and trust concerns
- 05MEDHigh investment range ($157,800–$438,000) with 6% royalty burden and no disclosed average returns creates unfavorable risk-reward profile
- 06HIGHGoing concern status indicates potential franchisor financial instability, raising questions about support and system 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.