JINYA Ramen Bar
Bottom line
- Total investment $1.6M – $3.5M including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $2.8M/year (median $2.6M).
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 36 loans (below the industry average).
- System growing at 40.5% CAGR over 3 years with 62 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one JINYA Ramen Bar unit return on the cash you put in?
Unlevered ROIC · per unit
18%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 JINYA Ramen Bar units return on equity?
Equity IRR · 5-yr
26.3%
3.22× MOIC
Year-1 DSCR
3.14×
EBITDA ÷ debt service
Equity required
$14.5M
on $27.8M purchase
Total debt
$13.4M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate fast-casual Japanese ramen restaurants, managing daily operations including ramen production, table service, inventory control, and staff management. The business model depends on high food cost management, traffic volume, and premium pricing (typical ramen bowl $12–16) to achieve profitability.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 21 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
JINYA presents elevated risk due to material litigation history, non-transparent profitability metrics, and high capital requirements relative to modest system growth.
Score breakdown · what drove the 54 / 100 rating
- 01MEDNet income not disclosed in Item 19 — impossible to assess true profitability despite $2.78M average revenue
- 02HIGHFour litigation settlements totaling $828,000+ within 7 years, including territorial exclusivity disputes and fraud allegations
- 03MEDHigh initial investment ($1.6M–$3.5M) combined with undisclosed net income creates severe ROI uncertainty
- 04MINORModest unit growth (11.3% YoY across only 62 units) suggests market saturation or franchisee struggles
- 05MINORADA compliance lawsuit (2020) indicates potential operational/compliance gaps across system
- 06MINORTerritorial exclusivity dispute with franchisor (SF Yakiniku arbitration) raises questions about territory protection reliability
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
35 numbers
One-time purchase · CSV download · Validation questions included
FDD download
JINYA Ramen Bar · FDD (2025) PDF