FranchiseVerdict
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B55/100FDD 2025

Qamaria Yemeni Coffee Co. — Litigation & Risk

Food & Beverage - Coffee & Tea · 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
55 / 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
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
Michigan
State whose law governs disputes — relevant if you're not based there

What drove the 55/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status is FALSE — suggests potential financial instability or undisclosed material weaknesses in the franchisor
  2. 02MEDNet Income not disclosed — inability to verify actual profitability despite $1.02M average revenue; franchisees cannot validate unit economics
  3. 03MINORAggressive unit growth (140% YoY) with only 27 units — expansion may be outpacing operational support capacity and masking underlying unit quality issues
  4. 04MEDHigh investment ceiling ($408K) relative to disclosed average revenue and missing net income data creates opacity around ROI timeline
  5. 05MINOR5% royalty on gross revenues (not net) — franchisees pay on top-line even during losses or low-margin periods

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.