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A46/100FDD 2026

Quickway Hibachi — Litigation & Risk

Food & Beverage - Quick 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
46 / 100
FranchiseVerdict composite
Rating
STRONG
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
No
Franchisor can match any purchase offer when you try to sell
Governing law
Virginia
State whose law governs disputes — relevant if you're not based there

What drove the 46/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot verify if average revenue/net income figures are achievable or representative
  2. 02HIGHGoing Concern status is 'False' — suggests franchisor may have financial stability questions or recent restructuring
  3. 03MINOR49 total units with unknown growth trajectory — insufficient data to assess system momentum or franchisee success rate
  4. 04MINORWide investment range ($420K–$1.133M) indicates high variability in startup costs and potential ROI unpredictability
  5. 05MINORRoyalty escalation to 5% in year 6 increases ongoing costs just as franchisees may be establishing stability

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.