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D76/100FDD 2023

Pokitomik — 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
76 / 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 76/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status indicates fundamental financial viability issues at franchisor level
  2. 02MINOROnly 3 units systemwide suggests minimal proven concept validation and extreme system fragility
  3. 03MINORNo average revenue or net income disclosure prevents ROI assessment and suggests weak performer data
  4. 04MINORHigh investment range ($127,750–$287,750) with 6% royalty creates significant fixed costs against unknown revenue potential
  5. 05MINORUnknown unit growth trajectory indicates no demonstrated expansion momentum or franchisee success replication
  6. 06MINORMinimal franchisor scale limits support infrastructure, training quality, and vendor negotiating power

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.