FranchiseVerdict
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B55/100FDD 2025

Ululani’s Hawaiian Shave Ice — Litigation & Risk

Other · 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
55 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
3 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
Washington
State whose law governs disputes — relevant if you're not based there

What drove the 55/100 rating

Risk Score Breakdown

  1. 01MINORNo financial disclosure (Item 19): Average unit volumes and net income not provided, making ROI calculation impossible
  2. 02MEDSmall unit count (10 units) with only 33.3% YoY growth suggests limited brand awareness and unproven scalability
  3. 03MINORHigh initial investment ($285k-$566k) relative to unit size and revenue opacity creates significant financial risk
  4. 04MINORSeasonal business model (shave ice) typically concentrates revenue in summer months, creating cash flow volatility
  5. 05MINORLack of established financial benchmarks prevents franchisees from validating profitability claims

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.