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B65/100FDD 2025

Wagyu Street — 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
65 / 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
California
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 unit in system with unknown growth trajectory indicates unproven franchise model with no track record of replicability
  2. 02MINORZero financial disclosure (avg revenue and net income not provided) makes ROI projections impossible and suggests weak system performance data
  3. 03MINORHigh initial investment range ($377k-$577k) combined with tiered royalty structure (5%-3%) lacks transparent profitability benchmarks to justify costs
  4. 04MED10-year term is lengthy commitment with single reference unit and no disclosed unit economics or break-even timeline
  5. 05MINORSpecialty protein market (Wagyu beef) carries commodity price volatility risk and narrow customer base compared to broader QSR categories

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.