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B63/100FDD 2026

Suki Hana — 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
63 / 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
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 63/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 (Average Unit Volume) disclosed — impossible to assess ROI or validate the $295k-$1.4M investment range
  2. 02HIGHGoing Concern status is FALSE — indicates potential financial instability at corporate level
  3. 03MINORUnprotected territory — franchisees face direct competition from other SUKI HANA units with no geographical exclusivity
  4. 04MEDModest unit growth of 11.1% YoY with only 39 total units — suggests limited brand recognition and slower-than-ideal expansion
  5. 05MINORWide investment range ($295k-$1.4M spread) without corresponding revenue disclosure — unclear what drives cost variance and profit potential
  6. 06MINOR5% royalty on weekly gross sales is standard but with no net income data, franchisees cannot determine actual profitability after all fees

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.