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D75/100FDD 2025

Sunbi Kimbap — 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
75 / 100
FranchiseVerdict composite
Rating
CAUTION
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
California
State whose law governs disputes — relevant if you're not based there

What drove the 75/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern warning indicates serious financial distress or viability questions at corporate level
  2. 02MINORZero existing franchised units with unknown growth trajectory suggests brand has not successfully scaled or may be in contraction
  3. 03MEDNo average revenue or net income disclosure (missing Item 19) prevents realistic ROI validation and suggests poor unit economics
  4. 04MINORUnprotected territory creates direct competition risk; multiple franchisees could cannibalize sales in same market
  5. 05MEDHigh investment ceiling ($461k) combined with undisclosed returns represents significant capital risk
  6. 06MINOR5-year term is relatively short and may indicate corporate uncertainty or difficulty retaining franchisees
  7. 07MINOREarly-stage or struggling brand with no proven unit performance data

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.