D75/100FDD 2025
Warabimochi Kamakura — Litigation & Risk
Food & Beverage - Ice Cream & Desserts · FDD Items 3, 4 & 5
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
Not required
You retain the right to sue in court
Jury trial waiver
Not waived
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
No
Franchisor can match any purchase offer when you try to sell
What drove the 75/100 rating
Risk Score Breakdown
- 01HIGHGoing concern warning indicates potential financial distress or viability questions at franchisor level
- 02MINORZero operating units with unknown growth trajectory suggests either pre-launch or system collapse/reboot
- 03MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI validation and profitability assessment
- 04MINORExtremely high royalty structure (40% of subfranchisee fees) is unusual and may indicate franchisor dependency on recruitment rather than operational support
- 05MINORHigh initial investment ($88,883–$226,667) combined with non-disclosure of returns creates significant financial risk
- 06HIGHUnknown franchise term viability and no disclosed litigation history raises transparency concerns
- 07MEDJapanese specialty food concept (mochi) has limited market appeal and operational complexity in Western markets
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.