Samurai Sam’s Teriyaki Grill — Litigation & Risk

1. 01HIGHGoing Concern status is FALSE — indicates potential financial distress or viability questions at corporate level
2. 02MINOROnly 12 units system-wide with unknown/likely stagnant growth — suggests failed expansion and weak brand momentum
3. 03HIGHMultiple litigation cases involving breach of contract, misrepresentation, and state franchise act violations in MD, NY, VA — pattern of compliance and disclosure failures
4. 04MEDNet Income not disclosed in Item 19 — prevents ROI analysis and suggests poor unit economics or unwillingness to disclose
5. 05MINORNo protected territory — direct competition from other franchisees and company-owned locations creates cannibalization risk
6. 06MINORRoyalty floor of $300/week ($15,600 annually) is punitive for underperforming locations and creates cash flow pressure
7. 07MINORHigh investment range ($112k-$623k) with opaque profitability — risk-reward misaligned
8. 08MINORState administrative actions indicate systemic disclosure and registration violations — red flag for franchisor integrity

Severity inferred from FDD text — not a regulatory or legal classification