B63/100FDD 2023
Poki Bowl — Litigation & Risk
Food & Beverage - Full Service · FDD Items 3, 4 & 5
Moderate — Review
2 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
2
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
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
6
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$1.5M
Avg loan size
$258K
Participating lenders
5
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 63/100 rating
Risk Score Breakdown
- 01HIGHPending litigation including fraud allegations and regulatory consent order regarding disclosure failures indicates governance and transparency issues at franchisor level
- 02MEDNet income not disclosed in FDD Item 19 prevents ROI validation; average revenue of $441K may not support $187K-$423K investment range without profitability confirmation
- 03MINORUnit count dropped 25% YoY (from ~23 to 17 units), signaling potential system contraction, franchisee underperformance, or franchisor retention problems
- 04HIGHGoing concern status is FALSE, suggesting accountant doubts about franchisor's ability to continue operations and support existing franchisees
- 05MEDHigh investment range ($423K ceiling) combined with 5.5% royalty on undisclosed net margins creates unclear path to profitability within 10-year term
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.