B59/100FDD 2025
RAKKAN Ramen — Litigation & Risk
Food & Beverage - Full Service · FDD Items 3, 4 & 5
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
59 / 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
1 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 59/100 rating
Risk Score Breakdown
- 01MEDNo Item 19 (Average Unit Volume) disclosed despite $949,925 avg revenue claim — cannot verify profitability or ROI credibility
- 02MEDOnly 15 units system-wide indicates minimal scale and limited proven replicability; growth trajectory unknown
- 03HIGHGoing Concern designation is FALSE — potential financial instability at franchisor level affecting support and longevity
- 04MINORHigh initial investment range ($379.5K–$865K) creates significant downside risk with unproven unit economics
- 05MEDNet income completely undisclosed — franchisees cannot model realistic profit scenarios or payback periods
- 06MINOR5% royalty on gross (not net) means profitability erodes quickly if margins are thin in competitive ramen market
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.